2. Find the present worth of the cash flows shown. Some are expressed as constant- value (CV) dollars, and others are inflated dollars. Assume a real interest rate of 10% per year and an inflation rate of 4% per year. Year Cash Flow, S I Stated as 1 3000 CV 2 6000 Inflated 3 8000 Inflated 4 5 4000 5000 CV CV

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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2. Find the present worth of the cash flows shown. Some are expressed as constant-
value (CV) dollars, and others are inflated dollars. Assume a real interest rate of
10% per year and an inflation rate of 4% per year.
Year
Cash Flow, $
I Stated as
3000
CV
2
6000
Inflated
3
4
8000 4000
Inflated
CV
5
5000
CV
Transcribed Image Text:2. Find the present worth of the cash flows shown. Some are expressed as constant- value (CV) dollars, and others are inflated dollars. Assume a real interest rate of 10% per year and an inflation rate of 4% per year. Year Cash Flow, $ I Stated as 3000 CV 2 6000 Inflated 3 4 8000 4000 Inflated CV 5 5000 CV
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