Which Two of the Following Are Possible Approaches to Adjusting

question 8

Multiple Choice

Which two of the following are possible approaches to adjusting for inflation in project appraisal?

• A) Estimate the cash flow in money terms and use a real discount rate
• B) Estimate the cash flow in real terms and use a real discount rate
• C) Estimate the cash flow in real terms and use a money discount rate
• D) Estimate the cash flow in money terms and use a money discount rate

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