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ABC, Inc. owns an asset that it expects to sell in one year at a Real FCF of $120 million. ABC expects general price levels
ABC, Inc. owns an asset that it expects to sell in one year at a Real FCF of $120 million. ABC expects general price levels to increase 12% during this one year period. The real interest rate is 6%. What is the nominal discount rate?
A. 15.72%
B. 16.72%
C. 18.72%
D. 19.72%
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