Project M nominal cash flows $87.32 $49.64 $89.59 $34.29 time 0 $41.09 1 $30 2 $30 uppose the real interest rate is 9% per year, and the inflation rate is 2% per ear. What is the PV of Project M? 3 $30 4 $30

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Project M
nominal
cash flows
$87.32
$49.64
$89.59
$34.29
time 0
$41.09
1
$30
2
$30
Suppose the real interest rate is 9% per year, and the inflation rate is 2% per
year. What is the PV of Project M?
3
$30
4
$30
Transcribed Image Text:Project M nominal cash flows $87.32 $49.64 $89.59 $34.29 time 0 $41.09 1 $30 2 $30 Suppose the real interest rate is 9% per year, and the inflation rate is 2% per year. What is the PV of Project M? 3 $30 4 $30
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