Inflation Does Not Need to Be Built into Expected Cash

question 39

True/False

Inflation does not need to be built into expected cash flows; the discount rate used in net present value calculations captures the effect of inflation.If you were to include expected inflation into cash flows, all net present value calculations would be incorrect.

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Definitions:

Virtual Communication

Exchanging information and ideas through electronic means without physical presence.

Deceptive Tactics

Involves the employment of strategies designed to mislead, trick, or manipulate others for a perceived benefit.

Withholding Information

The act of intentionally not sharing relevant or necessary information with others who might benefit from knowing it.

Bluffing

A strategic deception or misrepresentation intended to make others believe something is true when it is not.