Question
Suppose the firms WACC is stated in nominal terms, but the projects expected cash flows are expressed in real dollars. In this situation, other things
Suppose the firms WACC is stated in nominal terms, but the projects expected cash flows are expressed in real dollars. In this situation, other things held constant, the calculated NPV would
a. Be correct.
b. Be biased downward.
c. Be biased upward.
d. Possibly have a bias, but it could be upward or downward.
e. More information is needed; otherwise, we can make no reasonable statement.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
