An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4, with all monetary amounts being in real dollars. Inflation is running 7% per year over that time....

An investment of $8,000 is made at time 0 with returns of $3,500 at the end of each of years 1–4, with all monetary amounts being in real dollars. Inflation is running 7% per year over that time. Also, the real rate of return is 15% per year. Determine the present worth of the investment using both real dollars and then-current dollars.