Suppose your firm would like to evaluate a proposed new operating division which will be carried...
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Suppose your firm would like to evaluate a proposed new operating division which will be carried through January 3, 2023. You have forecasted the incremental cash flow shown in the following table. The cash flow is a nominal cash flow (the numbers are in nominal terms). The cash flow is stated in thousands of DKK. The general rate of inflation from January 3, 2023, to January 3, 2026, is expected to be 5.5% per year. Date January 2023 3, January 2024 -23000 3, January 2025 Nominal Cash flow Calculate the real cash flow of the investment project using January 3, 2024, as the base. 9800 3, January 3, 2026 13450 9350 Suppose your firm would like to evaluate a proposed new operating division which will be carried through January 3, 2023. You have forecasted the incremental cash flow shown in the following table. The cash flow is a nominal cash flow (the numbers are in nominal terms). The cash flow is stated in thousands of DKK. The general rate of inflation from January 3, 2023, to January 3, 2026, is expected to be 5.5% per year. Date January 2023 3, January 2024 -23000 3, January 2025 Nominal Cash flow Calculate the real cash flow of the investment project using January 3, 2024, as the base. 9800 3, January 3, 2026 13450 9350
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