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Case Study 7: The Decision to Go to War in Iraq
Read Case Study 7 in the textbook and respond to the the following questions:
Case Study 7:
75 to 100 words
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A certain machine will have a cost of $25,000 (then $) six years from now. Find the PW of the machine if the real interest rate is 10% per year and the inflation rate is 5% per year using (a) constant-value dollars, and (b) then-current dollars.
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