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Market interest rate 21. If a market interest rate, which inclucles an inflation component, is used by a company as its minimum required rate of
Market interest rate
21. If a market interest rate, which inclucles an inflation component, is used by a company as its minimum required rate of return in a net present value analysis, the a. expected cash flows from operations must be adjusted for inflation in order for the analysis to be consistent b. expected cash flows from operations must not be adjusted for inflation in order for the analysis to be consistent c. project will automatically be unacceptable d. expected tax savings from depreciation must be adjusted for inflation in order for the analysis to be consistent Step by Step Solution
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