Question: You are looking at forecasts prepared by your business development unit. You suspect that these numbers are inflated, not deflated. Your estimate of the inflation

You are looking at forecasts prepared by your business development unit. You suspect that these numbers are inflated, not deflated. Your estimate of the inflation rate is 2.5%. a. What are the deflated numbers corresponding to the above numbers? b. If the appropriate deflated discount rate is 11%, what is the present value of those expected cash flows? Use all deflated numbers for your calculations. c. Now use inflated numbers to calculate the present value

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