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fix cost 1000 1800 2800 3800Inflation is 3%
What is fix cost after infaltion for each year please sir tell how to calculate.?There are two methods – Nominal, and Real – there is surely lecture about this on OpenTuition I think.
You are posting many topics but it seems you havent watched F9 lectures enough times.
i see the lecture sir
fix cost is based on cuurent price so we inflate from current year but the problem is that when i inflate the answer not match ..i.e if fix cost 1000 same each year than it will be inflate simply by 3 % but in this case which i post fix cost increase every year plus inflation so i calculate this effect..
is this correct1 1000×1.03=1030
2 1800x 1.03=1854
3 2800×1.03= 2884
4 3800×1.03 = 3914 but answer not match with solution .
It is 3% per year but you have more than 1 year so you have to take to account all upcoming years
Try this one maybe?
1800×1.03^2
2800*1.03^3
3800*1.03^4Seagate is correct. You really must watch the lecture on investment appraisal with inflation again, more slowly, because dealing with the inflation is done several times on different flows.
Sir realy soryyyyyy . after your coment yesterday i do it again and slove my Q . Sir actually i am doing F9 with the help of open tution plus BPP kit and i am confidant i will pass but sir in some Q i have problem thats why i ask because i dont have any tutor but sir you are the greattt…
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