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Consider a situation, where (a) the equal-payment cash flow of $1,000 in constant dollars over three years is converted from (b) the equal-payment cash flow in actual dollars over three years, at an annual general inflation rate of f . Also, i = 9%. What is the amount A in actual dollars equivalent to A’ = $1,000 in constant dollars? Please provide step by step detail.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M9438852

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