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stranahan stranahan
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7 years ago
Harold's parents have offered him a $10,000 high school graduation gift with an option for another $20,000 upon graduation from college in four years. His friends tell him this is a $30,000 gift from his parents, but Harold already knows something about the time value of money. If the expected inflation rate over the next four years is expected to be 4% per year, what does Harold think the gift is worth in today's dollars? How should he explain his thinking to his friends?
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Financial Management: Core Concepts

Financial Management: Core Concepts


Edition: 2nd
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macawmatanemacawmatane
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7 years ago
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stranahan Author
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#2
7 years ago
Thank you very much for this. It's really helpful.
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