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A projects cash flows are expressed in real dollar terms. The appropriate nominal required return is 13.55 percent. The expected inflation rate is 2.50 percent.

  1. A projects cash flows are expressed in real dollar terms. The appropriate nominal required return is 13.55 percent. The expected inflation rate is 2.50 percent. What is the appropriate discount rate for discounting the projects real cash flows?

    A.

    13.55 percent

    B.

    14.99 percent

    C.

    10.78 percent

    D.

    9.97 percent

    E.

    11.05 percent

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