Inflation

Example - nominal figures

Year Cash Flow PV @ 10%

1 8000

2 8000x1.03= 8240

8000x1.03 = 8240

8000x1.03 = 8487.20

(^8000) 1.10
2
3

=

=
7272 73
6809 92
3 637656
4 5970 78
42999
8240
110
8487 20
110
874182
110
2
3
4
.
.
.
.
$26,.
.
.
.
.
.