Albright’s DADM_Tools Add-In - Kelley School of Business ...

Feb 02, 2008 · 4) The formula for deflation is . Index Number at the beginning * Cash Inflows. Index Number at the end (or) Cash Inflows / (1+Inflation Rate) n. Note: If in a problem Real cash flows are given and Inflation Rate and Cost of Capital is given then. i) Convert Real Cash Flows into Normal Cash Flows by using formulae said in (1) above. ................
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