Essay
Your boss just turned back your capital budgeting report because she is unsure of your results. The yearly revenues are going up at a constant rate equal to the consumer price index of 4% and the discount used was 6%. The boss also mentions that the long term Treasury bond rate is only 71/2%. Explain the boss' dilemma and how it should be corrected.
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The rates do not match. Nominal cashflow...View Answer
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