Multiple Choice
Which of the following statements is incorrect?
A) Real cash flows must be discounted at a real discount rate.
B) (1 + real rate of interest) = (1 + nominal rate of interest ) /(1 + inflation rate) .
C) Real rate of interest almost equals "nominal rate of interest - inflation rate."
D) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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