Assume You Computed the NPV of a Project Using Nominal

Multiple Choice

Assume you computed the NPV of a project using nominal values.Your partner computed the NPV of the identical project using real values,given a positive rate of inflation.When you compare your results,you should discover that

A) the discount rate used by your partner is higher than the rate you used.
B) both computations used the identical discount rate.
C) your NPV value is greater than your partner's NPV value.
D) your partner's initial cash flow at Time 0 is less than the value you used for Time 0.
E) your NPV values are identical.