Question
1. When making a capital budgeting decision, we discount the future cash flows (in nominal term) by nominal discount rate. If we discount the nominal
1.When making a capital budgeting decision, we discount the future cash flows (in nominal term) by nominal discount rate. If we discount the nominal cash flows by real discount rate, the NPV will be
A.understated
B.overstated
C.correctly stated
D.greater than zero
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Mathematical Interest Theory
Authors: Leslie Jane, James Daniel, Federer Vaaler
3rd Edition
147046568X, 978-1470465681
