Constant-value dollars and then-current dollars

Reference no: EM13700900

A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.

Reference no: EM13700900

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