Which One of the Following Methods Will Provide a Correct

question 94

Multiple Choice

Which one of the following methods will provide a correct analysis for capital budgeting purposes?

• A) Discounting real cash flows with real rates.
• B) Discounting real cash flows with nominal rates.
• C) Discounting nominal cash flows with real rates.
• D) Discounting nominal cash flows with either real or nominal rates.

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