It is aften eavy to overlook the impuct of inflation on the net present value of the project. Not incorporating the impact of infetion in determining the valve of the cash flows of the project can result in erroneous estimations. Contider the following scenario: Globex Corp. is considering opening a new dhision to produce units that zempects to sell at a price of $13,575 each in the first vear of the project. The company expects the cost of producing each unit to be $7,100 in the first year; however, it expects the seling price and cost per unt to increase by 1% each year. Bosed on the preceding information, the company expects the selling price in the fourth rear of the propect to be , and a expects the cost per unit in the fourth vear of the project to t Which of the following statements about inflation's effect on net present value (NPV) is correct? When the sefting price and cost per unit sre expected to increase at the sume nate, forgetting to toke inflation into account in o captal budgeting andipis will typically cause the estimate NeV to be lower than the true kn. It is often easy to overlook the impact of infation on the net present value of the project. Not incorporating the impact of inflation in determining the value of the cash flows of th erroneous estimations. Consider the following scenario: Gobex Corp. Is considering opening a new division to produce units that it expects to sell at a price of $13,575 each in the first year of the project. The company expects the producing each unit to be $7,100 in the first year; however, it expects the selling price and cost per unit to increase by 1% each year. Sased on the preceding information, the company expects the selling price in the fourth year of the project to be Which of the following statements about inflation's effect on net present value (NPV) is correct? When the selling price and cost per unit are expected to incresse at the same rate, forgetting to take NPV to be lower than the true NPV. When the seling price and cost per unit are expected to increase at the same rote, you do not need t and it expects the cost per unit in the fourth ye account in a capital budgeting analysis will typicall on into account when performing a capital budgetins Based on the preceding information, the company expects the selling price in the fourth year of the project to be e following statements about inflation's effect on net present value (NPV) is correct? When the selling price and cost per unit are expected to increase at the same rate, forgetting to take inflation int NPV to be lower than the true NPV. When the selling price and cost per unit are expected to increase at the same rate, you do not need to take inflat