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The NPV Value Obtained by Discounting Nominal Cash Flows Using

Question 48

Multiple Choice

The NPV value obtained by discounting nominal cash flows using the nominal discount rate is the same as the NPV value obtained by discounting


A) real cash flows using the real discount rate only.
B) real cash flows using the nominal discount rate only.
C) nominal cash flows using the real discount rate only.
D) real cash flows using the nominal discount rate and nominal cash flows using the real discount rate.

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