A Project Will Generate a Real Cash Flow Three Years

question 97

Multiple Choice

A project will generate a real cash flow three years from now of $100,000.If the nominal discount rate is 10% and expected inflation is 3%,what is the nominal cash flow for year 3?

• A) $112,551
• B) $106,090
• C) $109,273
• D) $122,504

Determine the legal due dates for promissory notes based on specific terms and conditions.

Calculate simple interest and main concepts.

Determine the maturity value of investments.

Understand the relationship between interest rates, investment periods, and final payouts.

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Definitions:

Potential Customers

Individuals or organizations that could become purchasers of a product or service, but have not yet done so.

Expected Profit

The forecasted amount of profit based on potential outcomes and their probabilities.

Price

The financial sum anticipated, needed, or handed over as payment for an item.

Typical Day

A representation of a common or routine day in a specific context, such as a job or activity.