Business, 30.07.2021 04:20 glogaming16

The Transocean Inc. plans to make a five-year period payment to offset its debt. The payments begin with a $2,000 payment (in constant dollars) at the end of the first year, and then increase at the rate of 3% per year. Assume that the average general inflation rate is 3%, and the market interest rate is 5% during this five-year period. a. Calculate the inflation free interest rate. (6 points)
b. What is the equivalent present worth of the payment series at year 0? Note the payments described above are in constant dollars.

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The Transocean Inc. plans to make a five-year period payment to offset its debt. The payments begin...