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Proper treatment of inflation in NPV calculations involves: Question 3 Answer a . discounting real cash flows by the inflation rate. b . discounting nominal
Proper treatment of inflation in NPV calculations involves:
Question Answer
a
discounting real cash flows by the inflation rate.
b
discounting nominal cash flows by the nominal discount rate and discounting real cash flows by the real discount rate.
c
discounting nominal cash flows by the real discount rate.
d
discounting real cash flows by the nominal discount rate
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