Multiple Choice
Which of the following statements presents the correct treatment of inflation in project evaluation?
A) Estimating cash flows based on constant prices and discounting them by the nominal cost of capital.
B) Estimating cash flows without adjustment for anticipated price changes and discounting them by the real cost of capital.
C) Estimating cash flows based on anticipated price changes and discounting them by the real cost of capital.
D) All of the given options.
Correct Answer:
Verified
Correct Answer:
Verified
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