Assume that the 12 rate used in problem 2 is a constant, Business Economics

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Assume that the 12 rate used in problem 2 is a constant

Assume that the 12% rate used in problem 2 is a constant dollar rate (i’). Now discount your end of year cash flows from problem 10 by inflation (f=4%) and re-compute your IRR’ and NPW’. What is the market interest rate (i)______________ IRR’__________ NPW’_______________

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Business Economics: Assume that the 12 rate used in problem 2 is a constant

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