A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in 2019 if the annual inflation and interest rates for the period are 7% and 9%, respectively?

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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Hello, Please help me with this problem, and also construct a cash flow diagram. Thank you

A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in
2019 if the annual inflation and interest rates for the period are 7% and 9%,
respectively?
Transcribed Image Text:A diamond ring will be worth P35,000 in 2023. How much was it when it was bought in 2019 if the annual inflation and interest rates for the period are 7% and 9%, respectively?
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