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You get a new job with a major engineering company and the senior engineer (Justin Trudeau) makes the following statement: When comparing constant cash flows

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You get a new job with a major engineering company and the senior engineer (Justin Trudeau) makes the following statement: "When comparing constant cash flows to actual cash flows, constant cash flows are more accurate in terms of estimating the rate of return of a project because it includes inflation. Furthermore, constant cash flows use the market interest rate, which are determined by the expectations of investors in the market." a) What is the difference between constant and actual cash flows. (2 marks) b) Comment on the validity of the Justin's statement about actual and constant cash flows

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