11 Inflation Example- real figures Y ear Cash flow PV6.7961% 8000 1.03 7766.9927609=727273 068 8240=776699769680992 234 1.03 1.068 848720=7766.9976699=637656 1033 1.068 84182=7766.99669 103 1182=5970.78 =826,429.99 Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 7- 11 Irwin/McGraw-Hill Inflation Example - real figures Year Cash Flow PV@6.7961% 1 = 7766.99 2 = 7766.99 = 7766.99 = 7766.99 8000 1.03 7766.99 1.068 8240 1.03 8487.20 1.03 8741.82 1.03 2 3 4 = = = = 7272 73 6809 92 3 6376 56 4 5970 78 26 429 99 7766 99 1 068 7766 99 1 068 7766 99 1 068 2 3 4 . . . . . . . . . . = $ ,