Which One of These Is a Requirement When Computing the Net

Multiple Choice

Which one of these is a requirement when computing the net present value of a capital project?

A) The discount rate used must be a nominal rate.
B) The discount rate must be stated in real terms.
C) Nominal cash flows must be discounted using a real rate.
D) Real cash flows must be converted to nominal cash flows.
E) Real cash flows must be discounted using a real rate.