Your Firm Expects to Receive a Cash Flow in Two

question 43

Multiple Choice

Your firm expects to receive a cash flow in two years of $10,816 in nominal terms.If the real rate of interest is 2% and the inflation rate is 4%,what is the real cash flow for year 2?

• A)$11,236
• B)$10,816
• C)$10,000
• D)$9,246

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