Proper Treatment of Inflation in NPV Calculations Involves

question 39

Multiple Choice

Proper treatment of inflation in NPV calculations involves:
I.discounting nominal cash flows by the nominal discount rate;
II.discounting real cash flows by the real discount rate;
III.discounting nominal cash flows by the real discount rate

• A)I only
• B)II only
• C)III only
• D)I and II only

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