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

question 60

Multiple Choice

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

• A)$60,000
• B)$62,424
• C)$66,150
• D)$63,654

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