Which of the Following Would Be More Likely to Make

question 92

Multiple Choice

Which of the following would be more likely to make an unacceptable project appear acceptable?

• A)discounting real cash flows with real rates.
• B)discounting nominal cash flows with real rates.
• C)discounting real cash flows with nominal rates.
• D)discounting nominal cash flows with nominal rates.

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Definitions:

Tax Rate

The proportion of their earnings or profits that entities or individuals are required to pay to the government in the form of taxes.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Inventory

The inventory of products and materials maintained by a business for selling or manufacturing purposes.