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The Widget Company will need a certain type of milling machine for its new assembly line. The machine presently costs $85,000. It has had a differential inflation rate of 2%. Widget will not need to purchase the machine for 2 years. If inflation is expected to be 4% per year during those 2 years, determine the nominal price of the machine. What is the PW of the machinery if the market rate of interest for Widget is 9%.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92638799

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