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Other Accountancy Qualifications
Investment appraisal
I don't know which qualification you are studying for, but investment appraisal with inflation is all explained in my free lectures (including this specific point) for ACCA Paper FM.
If the selling price is given in year 1 price terms, then the actual (nominal) cash flow will be 13,000 at time 1, and will inflate at 3% our year thereafter.
You are welcome :-)
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