QUESTION B3 The cashflow below represents the amount invested by a company into a special purpose fund starting now and then every even-numbered year, over a ten-year period. Year Investmet Amount 2 3...


QUESTION B3<br>The cashflow below represents the amount invested by a company into a special<br>purpose fund starting now and then every even-numbered year, over a ten-year period.<br>Year<br>Investmet Amount <$><br>2<br>3<br>4<br>5<br>7<br>10<br>25, 000<br>8, 000<br>12, 000<br>7, 500<br>9, 000<br>10, 000<br>The average inflation rate over the period was 4% per year and the company was<br>quoted a market interest rate of 12% by the fund. After 10 years of investment by the<br>company, what would be the purchasing power of the total return on their investment<br>in terms of year zero's (Year 0's) Constant Value dollars?<br>

Extracted text: QUESTION B3 The cashflow below represents the amount invested by a company into a special purpose fund starting now and then every even-numbered year, over a ten-year period. Year Investmet Amount <$> 2 3 4 5 7 10 25, 000 8, 000 12, 000 7, 500 9, 000 10, 000 The average inflation rate over the period was 4% per year and the company was quoted a market interest rate of 12% by the fund. After 10 years of investment by the company, what would be the purchasing power of the total return on their investment in terms of year zero's (Year 0's) Constant Value dollars?

Jun 02, 2022
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