Based on the information available below, calculate the real rate of return if general inflation rate...

 

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Based on the information available below, calculate the real rate of return if general inflation rate is 10% but the sales revenue increases only at 8% rate. Year 0 1 2 3 4 5 6 cash outflow -1000000 estimated sales revenue without inflation 700000 800000 850000 850000 850000 850000 estimated operating cost without inflation 300000 550000 600000 650000 650000 700000 estimated net cash inflow without inflation 400000 250000 250000 200000 200000 150000 Based on the information available below, calculate the real rate of return if general inflation rate is 10% but the sales revenue increases only at 8% rate. Year 0 1 2 3 4 5 6 cash outflow -1000000 estimated sales revenue without inflation 700000 800000 850000 850000 850000 850000 estimated operating cost without inflation 300000 550000 600000 650000 650000 700000 estimated net cash inflow without inflation 400000 250000 250000 200000 200000 150000

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Real rate of return When the effect of inflation is incorporated in a return rate in order to reflec... View the full answer