3232ex12-1 - 21,287.66 4 29,000 (1.05)^-4 23,858.37...

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3232ex12-1 Inflation-free MARR 10% Inflation rate 5% Hence Market MARR = 15.50% =(1.1)(1.05)-1 Get PE(10%) in constant dollars Get PE (15.5%) in actual dollars N PE(10%) 0 -75,000 (1.05)^0 -75,000.00 (1.1)^-0 -75000 (1.155)^-0 -75,000.00 1 32,000 (1.05)^-1 30,476.19 (1.1)^-1 27705.63 (1.155)^-1 27,705.63 2 35,700 (1.05)^-2 32,380.95 (1.1)^-2 26761.12 (1.155)^-2 26,761.12 3 32,800 (1.05)^-3 28,333.87 (1.1)^-3 21287.66 (1.155)^-3
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Unformatted text preview: 21,287.66 4 29,000 (1.05)^-4 23,858.37 (1.1)^-4 16295.59 (1.155)^-4 16,295.59 5 58,000 (1.05)^-5 45,444.52 (1.1)^-5 28217.47 (1.155)^-5 28,217.47 Total 45267.46 45,267.46 Totals are the same which must be the case Net Actual Cash Flow Conversion to Constant Dollars Net Constant Dollars Conversion to PE(10%) Conversion to PE(15.5%) PE(15.5%) on Actual Dollars...
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This note was uploaded on 11/19/2010 for the course ME 3232 taught by Professor Lyon during the Fall '10 term at University of New Brunswick.

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