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Mr. Art Deco will be paid $260,000 one year hence. This is anominal flow, which he discounts at a nominal discount rate of 9%.PV = $260,000 / (1 + .09) = $238,532 The inflation rate is 4%.Calculate the PV of Mr. Deco’s payment using the equivalent realcash flow and real discount rate. (You should get exactly the sameanswer as he did.) (Do not round intermediate calculations. Roundyour "Real cash flow" and "Present value" answers to the nearestwhole dollar amount. Enter the "Real discount rate" as a percentrounded to 3 decimal places.)Real cash flow ?$Real discount rate ?%Present value? $
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