Compute the present worth using the actual dollar alarr

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An investment pays S10 000 in five years.

(a) If inflation is 10% per year, what is the real value of the $10 000 in today's dollars?

(b) If inflation is 10% and the real ALARR is 10%, what is the present worth?

(c) Wmat actual dollar ALARR is equivalent to a 10% real MARR when inflation is 10%?

(d) Compute the present worth using the actual dollar ALARR from part (c).

Reference no: EM131374395

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