QUESTION-2 Someone calculated the futureaworth of his investment in term of today's dollars. The Obtained result was $/945,895. The life of the investment is expected to be 20 years. The average annual inflation rate along this period is 7%, If it is known that the investor earns 149% per year from this investment, what is the first cost of the investment?

3 eBook Hint Print References Problem 14.030: Compare alternatives by calculating their capitalized cost Compare the alternatives below on the basis of their capitalized costs with adjustments made for inflation. Use / -9% per year and f= 3.5% per year. Alternative First cost, $ AOC. $ per year Salvage value, $ Life, years X -15,500,000 -25,000 105,000 00 The capitalized cost for alternative X is $[ The capitalized cost for alternative Y is $[ Select alternative X Y -12,500,000 -10,000 82,000 10

If you invest S1000 now, what is the future dollars for 10 years, when IR is 6% and inflation rate is 4%. "Type the final answer in the box without the currency sign"

(i) (ii) (iii) Given a consumer price index of 154.5 in the year 2019 and 165.3 in 2020, calculate the rate of inflation in 2020. The average price of a car was £35,650 in 2019. Calculate the revised price in 2020 based on the rate of inflation calculated in part (i). Assume that in 2019 Robert has invested £2000 in a bank account, which pays an annual interest rate of 6%. After a year has passed, he is paid £120 in interest. Explain whether Robert is now better off than he was the year before based on your answer in part (i).