Cash flows in current dollars and in constant dollars

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A machine has a first cost of $100,000 (in today's dollars) and a salvage value of $20,000(in then current dollars) at the end of a five year life. The machine will provide savings ofone workers salary and benefits per year over its life of five years.The salary and benefits for one worker are $30,000 (in today's dollars, at time zero.expected to be at the rate of inflation which is 7%. Quiz Question - Construct a cash flow table showing cash flows in current dollars and in constant dollars (i.e., today's dollars).What is the CASH FLOW (in current dollars) at year 5 ?

Reference no: EM131847790

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