Department is budgeting miscellaneous expenses

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Reference no: EM13981513

Your department is budgeting miscellaneous expenses for the next 5 years. Your best guess at the annual inflation rate is 3.9% and the combined MARR is 15%. Expenses currently run $14,500 per year. Assume that expenses are end-of-year payments.

a. Determine the then-current dollar amounts for years 1, 2, 3, 4, and 5.

b. Determine the constant dollar amount for years 1, 2, 3, 4, and 5.

c. Determine the PW of the then-current dollar amounts.

d. Determine the PW of the constant dollar amounts.

Reference no: EM13981513

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