Which of the Following Is NOT a True Statement

question 77

Multiple Choice

Which of the following is NOT a true statement?

• A)Inflation always affects future levels of sales and expenses equally.
• B)Inflation affects the firm's cost of capital.
• C)Actual cash flows should be discounted with nominal discount rates.
• D)Inflation-adjusted cash flows should be discounted with real discount rates.

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Definitions:

Brazilian Assets

Financial or physical assets located in Brazil, including but not limited to real estate, stocks, bonds, and other investments within Brazilian jurisdiction.

Real Interest Rate

The interest rate adjusted for inflation, reflecting the real cost of borrowing or the real yield on savings.

Net Capital

The difference between a company's or country's total assets and its total liabilities, indicating the net value of its capital resources.

Loanable Funds

The market where savers supply funds for loans to borrowers, influenced by the interest rate.