[laurieann]

I’m actually trying to understand Pinks Co. Question 32 a part (ii) of this question. Please explain how they arrive at the real cash flows before tax. I thought the real cash flows were simply using the forecasted data given without adjusting for inflation. I am looking at the answer, but not understanding how they arrived at the following real cash flows before tax.
Y1 $13,643,
Y2 $22408,
Y3 $35,823,
Y4 $8,975

Please explain

[laurieann]

Understood. Thank you!

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