An offshore services company is considering the purchase of equipment that has a cost today of $96,000.
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An offshore services company is considering the purchase of equipment that has a cost today of $96,000. Inflation is a concern. The manufacturer plans to raise the price exactly in accordance with the inflation rate that may be somewhere between 1% and 8% per year. Develop a graph of how much the equipment will cost 3 years from now in terms of both
(a) CV,
(b) Future dollars.
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a In CV dollars the cost will be the same as today 96000 for all inflation rates b Futur...View the full answer
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