7. The nominal interest rate is 18%. The inflation rate is 9%. What is the real rate? A) 27.00% B) 9.00% C) 7.63%. D) 28.62% E) None of the above. 8. A printing press has a cost of $60,000 and a useful life of 5 years. If the company has a marginal tax rate of 40% and chooses to depreciate straight line for tax purposes, what is the yearly tax shield? A) $ 7,920. B) $16,000. $24,000 $ 4,800. 9. If the inflation rate was positive the expected NPV of an investment would be: A) understated if real cashflows were discounted by the nominal discount rate. B) understated if nominal cashflows were discounted by the nominal discount rate. C) D overstated if the real cashflows were discounted by the nominal discount rate. understated if the nominal cashflows were discounted by the real discount rate. overstated if the real cashflows are discounted by the real discount rate. E)