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

question 67

Multiple Choice

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

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