When all future cash flows are expressed in constant-value dollars, the rate that should be used to find the present worth is the:a. real MARR.b. inflation rate.c. inflated interest rate.d. inflated MARR.
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When all future cash flows are expressed in constant-value dollars, the rate that should be used to find the present worth is the:
a. real MARR.
b. inflation rate.
c. inflated interest rate.
d. inflated MARR.
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- The CPI-U (U.S. city average, all items) has the following annual averages: a. For each year from 2014 to 2017 determine the annual inflation rate inpercent to two decimal places. b. Because inflation, like interest, is compounded from period to period (e.g., year to year), estimate the overall annual inflation rate per year from 2013 to 2017. Suggestion! Do not simply average the rates of part (a).The average cost of a gallon of gas was $0.80 per gallon in 1995. In 2011, theaverage cost of a gallon of gas is $3.50. What is the average inflation rate for the period 1998-2011?A company has the option of building a warehouse now or building in three years from now. The cost now would be $400,000, but three years from now the cost will be $500,000. If the company minimum attractive rate of return (real) is 12% per year and the inflation rate is 10% per year, the present worth cost of the building in three years when inflation is considered is closed to: A. $268 700 (Answer) B. $355,900 C. $357,650 D. $402,700
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- Calculate the inflation-adjusted interest rate when the annualized inflation rate is 7% per yar and the real interest rate is 4% per year..If the CPI for January 2008 is 208.837 and the CPI for December 2018 is 255.539, what is the average annual inflation rate (per year) from Jan 2008 to Dec 2018?Inflation The consumer price index (CPI) of a certain country is given by I(t) = -0.02t³ + 0.4+² + 126 (0 ≤ t ≤ 4) of 2013. Find the annual percentage rate of inflation in the CPI of the country at the beginning of 2015. (Round your answer to three decimal places.) where t = 0 corresponds to the beginning %/year