a. A business is considering an investment that requires $1000 initial outlay and will return...
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Accounting
a. A business is considering an investment that requires $1000 initial outlay and will return $250 per year for 5 years. The real interest rate is 5 percent. Calculate the present value of the businesses investment. b. Assume that the social rate of retum is 3 percent. Calculate the return to society of such a project? c. How would you calculate the retum in part a. if the inflation rate were 5% and the benefits were in current year or nominal dollars after inflation)
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