ipis the inflation rate and if the real interest rate. Using a simplified nominal factor (1 +0=(1+ir+it) instead of the exact one (1 + i)=(1 + i)(1+ie) will result in the calculations of NPV to be Overestimated Underestimated It is impossible to predict There will be no difference A farm has a capital structure so that D/A and E/A are both 0.5. The cost of debt capital is 6% and the tax rate is 25%; the ROE is 4.5%. The WACC is... 6% 5.5% 5% 4.5%