Contemporary Engineering Economics 6th Edition by Chan Park

تمرين 15

Consider the following project's after-tax cash flow and the expected annual general inflation rate during the project period.
(a) Determine the average annual general inflation rate over the project period.
(b) Convert the cash flows in actual dollars into equivalent constant dollars with the base year 0.
(c) If the annual inflation-free interest rate is 5%, what is the present worth of the cash flow Is this project acceptable