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 %.

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 %.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

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
%.

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