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Which one of these statements is incorrect? a) Real cash flows must be discounted at a real discount rate. b) (1 + real rate of
Which one of these statements is incorrect?
a) Real cash flows must be discounted at a real discount rate.
b) (1 + real rate of interest) = (1 + nominal rate of interest)/(1 + inflation rate)
c)The actual real rate of interest almost equals "nominal rate of interest - inflation rate."
d)Inflation rate = Nominal rate/Real rate - 1
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