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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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.
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