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Which one of these is a requirement when computing the net present value of a capital project? The discount rate used must be a nominal
Which one of these is a requirement when computing the net present value of a capital project?
The discount rate used must be a nominal rate.
The discount rate must be stated in real terms.
Nominal cash flows must be discounted using a real rate.
Real cash flows must be converted to nominal cash flows.
Real cash flows must be discounted using a real rate.
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