Global steel prices have a yearover-year inflationary rate increase of 12.4%. Tube Fab purchased $700,000 of a particular carbon steel during the year just ended right now, and they intend to purchase the same quantity at the end of each of the next 5 years. Tube Fab earns a real rate of 16.0% on their money. Solve, a. Determine the then-current amounts they will pay for steel at the end of each of the next 5 years. b. Determine the constant value amounts they will pay for steel at the end of each of the next 5 years. c. Determine Tube Fab’s PW of expenditures over the next 5 years using then-current dollars. d. Determine Tube Fab’s PW of expenditures over the next 5 years using constant-value dollars.
Global steel
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