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Proper Treatment of Inflation in NPV Calculations Involves

Question 54

Multiple Choice

Proper treatment of inflation in NPV calculations involves


A) discounting nominal cash flows by the nominal discount rate.
B) discounting real cash flows by the real discount rate.
C) discounting nominal cash flows by the real discount rate.
D) discounting nominal cash flows by the nominal discount rate and discounting real cash flows by the real discount rate.

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