Multiple Choice
Why is it fairly easy to fall into the trap of discounting real cash flows with nominal rates?
A) It is difficult to determine real discount rates.
B) Increases in cash flows are often not forecasted.
C) Inflation does not impact cash flows, but it does impact discount rates.
D) Increases in revenues are offset by increases in costs.
Correct Answer:
Verified
Correct Answer:
Verified
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