Question: Array Solutions requires a 14.0% return on their projects. Analysis shows that even though they have been earning the desired 14.0%, their real return appears

Array Solutions requires a 14.0% return on their projects.

Analysis shows that even though they have been earning the desired 14.0%, their real return appears to be only 10.0% when they look at what they can buy with their returns.

a. Explain why there is this discrepancy.

b. Determine the inflation rate.

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