S100 $100 $100 $100 $60 $60 $60 $60 2 3 5 6 7 8 Years

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter22: Inflation
Section: Chapter Questions
Problem 18RQ: What is deflation?
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Question

Consider an investment project with the following repeating cash flow pattern
every four years forever:

 

What is the annual-equivalence amount of this project at an interest rate of 14 %?

S100 $100
$100 $100
$60 $60
$60 $60
2
3
5 6 7 8
Years
Transcribed Image Text:S100 $100 $100 $100 $60 $60 $60 $60 2 3 5 6 7 8 Years
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