The Real Approach to Incorporating Inflation into the Net Present

question 81

Multiple Choice

The real approach to incorporating inflation into the net present value method predicts ________.

• A) cash inflows and outflows in real monetary units and uses a real rate as the required rate of return
• B) cash inflows and outflows in real monetary units and uses a nominal rate as the required rate of return
• C) cash inflows and outflows in nominal monetary units and uses a real rate as the required rate of return
• D) cash inflows and outflows in monetary units that are adjusted for inflation and uses a real rate as the required rate of return

---

Definitions:

Subjective

Based on or influenced by personal feelings, tastes, or opinions rather than external facts.

Physiological Sensation

A physical feeling or perception resulting from something that happens to or comes into contact with the body.

Emergency Department

A specialized section of a hospital dealing with acute illnesses, injuries, or emergencies requiring immediate medical attention.

Central Nervous System Depression

A decrease in the functioning of the brain and spinal cord, which can affect consciousness and respiratory rate, often caused by medications or toxins.