Question: SOLVE USING EXCEL AND FORMULAS Mr. Art Deco will be paid $100,000 one year hence. This is a nominal flow, which he discounts at an

SOLVE USING EXCEL AND FORMULAS

Mr. Art Deco will be paid $100,000 one year hence. This is a nominal flow, which he discounts at an 8% nominal discount rate:

PV = $100,000 1.08 = $92,593

The inflation rate is 4%. Calculate the PV of Mr. Decos payment using the equivalent real cash flow and real discount rate.

Solve using excel, please

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