Business, 21.02.2020 06:26 Ash1212

Your consulting firm will produce cash flows of $100,000 this year, and you expect cash flow to keep pace with any increase in the general level of prices. The interest rate currently is 6%, and you anticipate inflation of about 2%.a. What is the present value of your firm’s cash flows for years 1 through 5? b. How would your answer to (a) change if you anticipated no growth in cash flow?

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