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:

Benefit Payments

Money paid to individuals by the government or insurance schemes, as in the case of unemployment benefits, social security, or disability payments.

Social Security Surplus

Occurs when the income from Social Security contributions exceeds the payouts to beneficiaries.

Old Age

A life stage characterized by advanced age, usually associated with retirement from active employment and the onset of age-related health issues.

Survivors Insurance

A form of social security benefit that provides financial support to the family members or dependents of a deceased worker.