α-β, Inc., a high-tech company in San Diego, whose stock trades on the NYSE exchange, uses a MARR of 33% per year. If the chief financial officer (CFO) said the company expects to make a real rate of return of 20.8% per year on its investments over the next 5-year period, what is the company expecting the annual inflation rate to be over that time period?
The company is expecting the annual inflation rate to be % per year.