Because Future Inflation Has No Effect on the Current Purchase

question 58

True/False

Because future inflation has no effect on the current purchase price of an asset, inflation factors can be ignored when capital-budgeting decisions are made.

---

Definitions:

Indication

A signal or symptom that suggests the presence of a condition, disease, or need for treatment.

Influence

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.

Introspection

The examination or observance of one's own emotional and mental processes, allowing for self-awareness and understanding.

Objectivity

The quality of being unbiased, detached, and free of any personal or subjective influences.