QUESTION 2 A machine will have a cost of $35 thousand, 5 years from now. Find the present worth (PW) of the machine, if the real interest rate is 996 per year and the inflation rate is 496 per year using constant-value dollars.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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QUESTION 2
A machine will have a cost of $35 thousand, 5 years from now. Find the present worth (PW) of the machine, if the real interest rate is 9% per year and the inflation rate is 4% per year using constant-value dollars.
Transcribed Image Text:QUESTION 2 A machine will have a cost of $35 thousand, 5 years from now. Find the present worth (PW) of the machine, if the real interest rate is 9% per year and the inflation rate is 4% per year using constant-value dollars.
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