You expect to receive an inheritance of $50,000 six years from now. Its present worth at a real interest rate of 4% per year and an inflation rate of 3% per year is closest to: (a) $27,600 (b) $29,800 (c) $33,100 (d ) $50,000

A software company’s labor requirements currently cost $350,000/year. The labor hour requirements are expected to increase by 10% per year over the next five years. If inflation is 4%, determine the labor costs after 5 years using: a. Then-current dollars. b. Constant-worth dollars.

a-ß, Inc., a high-tech in San Diego, whose stock trades on the NYSE exchange uses a MARR of 27.800% per year. If the chief financial officer (CFO) said the company expects to make a real rate of return of 20% per year on its investments over the next 3-year period, what is the company expecting the annual inflation rate to be over that time period? (Round the final answer to three decimal places.) The company is expecting an annual inflation rate of %.

The cost of constructing a roundabout (R/A) in a low-traffic residential neighborhood 5 years ago was $625,000. A civil engineer designing another R/A that is almost the same design estimates the cost today will be $740,000. If the cost had increased only by the inflation rate over the 5 years, determine the inflation rate per year.