Real Cash Flow Occurring in Year-2 Is $60,000

question 13

Multiple Choice

Real cash flow occurring in year-2 is $60,000. If the inflation rate is 5% per year, the real rate of interest is 2%, calculate the cash flow for the year-2.

• A) $60,000
• B) $55,422
• C) $66,150
• D) None of the above

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Definitions:

Serosa

The outermost layer of various organs in the body, particularly in the abdominal cavity, composed of connective tissue and serving to encase and protect the organs.

Superior to Inferior

Describes a direction in anatomy going from the upper part of the body towards the lower part.

Pharynx

A muscular tube that connects the mouth and nasal cavities to the esophagus and larynx, serving both the respiratory and digestive systems.

Esophagus

Portion of the digestive tract between the pharynx and stomach.