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You are considering buying another company. It will cost you $100,000 if you do so...

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Accounting

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You are considering buying another company. It will cost you $100,000 if you do so before the end of this year. What is the inflation adjusted net present value of the cash flows associated with this acquisition as of the end of 2025? IS: The nominal cost of capital, pre-inflation, is 15% and inflation is projected at 10% each year for the next three years. The real cost of capital =((1+ nominal cost of capital )/(1+ inflation rate ))1 The NPV of the inflation adjusted cash flows for 20222025 is

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