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3. When done correctly, what is the relationship between the present worth of an alternative calculated using an actual-dollar approach and the present worth of
3. When done correctly, what is the relationship between the present worth of an alternative calculated using an actual-dollar approach and the present worth of the alternative calculated using a constant-dollar approach? (a) they are equal (b) actual-dollar PW is higher because it uses inflated dollars (c) constant-dollar PW is higher because it uses a lower discount rate (d) cannot be determined without knowing the cash flows and inflation rate
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