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Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.

Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.
Transcribed Image Text:Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9%, and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.
Determine the constant dollar amount for years 1, 2, 3, 4, and 5. ΕΟΥ Constant Dollar Amount 1 2 $ 3 4 $ 5 SA tA Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±5.
Transcribed Image Text:Determine the constant dollar amount for years 1, 2, 3, 4, and 5. ΕΟΥ Constant Dollar Amount 1 2 $ 3 4 $ 5 SA tA Carry all interim calculations to 5 decimal places and then round your final answer to the nearest dollar. The tolerance is ±5.
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