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How can inflation be incorporated into investment analysis using present value methods? By using a real discount rate and real cash flows. By using a
How can inflation be incorporated into investment analysis using present value methods?
By using a real discount rate and real cash flows.
By using a nominal discount rate and nominal cash flows.
Both methods A and are valid.
Neither method A nor B is valid.
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Financial Management Principles and Applications
Authors: Sheridan Titman, Arthur Keown, John Martin
12th edition
133423824, 978-0133423822
