A series of four annual constant-dollar payments beginning with $10,000 at the end of the first year is growing at the rate of 8% per year. Assume that the base year is the current year (n= 0). The market interest rate is 15% per year and the general inflation rate (f) is 7% per year. (a) Find the present worth of this series of payments, based on constant-dollar analysis The present worth is $ (Round to the nearest dollar.) don't use excel.

A series of four annual constant-dollar payments beginning with $10,000 at the end of the first year is growing at the rate of 8% per year. Assume that the base year is the current year (n= 0). The market interest rate is 15% per year and the general inflation rate (f) is 7% per year. (a) Find the present worth of this series of payments, based on constant-dollar analysis The present worth is $ (Round to the nearest dollar.) don't use excel.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter2: The One Lesson Of Business

Section: Chapter Questions

Problem 2.6IP

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