Multiple Choice
If an investment costing $2000 is expected to generate real cash flows of $900 p.a.for three years and prices are expected to increase at a rate of 10% p.a. ,what is the real required rate of return if the nominal cost of capital is 15%?
A) 6%
B) 5%
C) 1.05%
D) 4.55%
Correct Answer:
Verified
Correct Answer:
Verified
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