If the Discount Rate Is Stated in Nominal Terms, Then

question 57

Multiple Choice

If the discount rate is stated in nominal terms, then in order to calculate the NPV in a consistent manner requires that project:
I. cash flows be estimated in nominal terms
II. cash flows be estimated in real terms
III. accounting income be used

• A) I only
• B) II only
• C) III only
• D) None of the above

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Definitions:

DNA

The molecule that encodes genetic information in the nucleus of cells, determining the structure, function, and behavior of living organisms.

Junk DNA

A term formerly used to describe portions of the DNA sequence that do not encode for proteins, though many such regions are now known to have regulatory functions.

Gene Function

The specific biological role or activity of a gene product (either RNA or protein), which can influence an organism's traits and is essential for understanding genetics and molecular biology.

Genes

Units of heredity made up of DNA that act as instructions to make molecules called proteins.