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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Definitions:

Vertebra

One of the small bones that make up the vertebral column (spine), providing structural support and protecting the spinal cord.

Crushed

An injury or condition resulting from extreme pressure or force applied to an object, part of the body, or material, often leading to significant damage or compression.

Avulsion

Avulsion is an injury in which a body structure is forcibly detached from its normal point of insertion by either trauma or surgery.

Burst

A sudden release of energy or activity, or the act of breaking apart or rupturing violently.