Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project would earn $7000 in revenue today).  If the expected inflation rate is 2.4%, what is the nominal value of the annual revenue (the actual number of dollars received) 8 years from now? Question 4Answer a. $8462 b. $8666 c. $8264 d. $8070

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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Revenue from a project is expected to be $7000 per year in real terms (i.e. an identical project would earn $7000 in revenue today).  If the expected inflation rate is 2.4%, what is the nominal value of the annual revenue (the actual number of dollars received) 8 years from now?

Question 4Answer

a.
$8462
b.
$8666
c.
$8264
d.
$8070
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