A Nominal Cash Flow Occurring in Year 2 Is 52,000

question 114

Multiple Choice

A nominal cash flow occurring in year 2 is 52,000.If the inflation rate has been 10% per year, calculate the real cash flow for year-2.

• A)$60,800
• B)$50,000
• C)$42,975
• D)$62,920

---

Definitions:

Motivation

The psychological process that gives behavior purpose and direction.

Prejudices

Biased opinions or feelings against an individual or group without sufficient justification.

Communicative Problems

Difficulties or barriers encountered during the exchange of information between individuals.

Ethnicity

A category of people who identify with each other based on common ancestral, social, cultural or national experiences.