Inflation Does Not Need to Be Built into Expected Cash

question 39

True/False

Inflation does not need to be built into expected cash flows; the discount rate used in net present value calculations captures the effect of inflation.If you were to include expected inflation into cash flows, all net present value calculations would be incorrect.

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Prima Facie Case

A case in which the plaintiff has produced sufficient evidence of his or her claim that the case will be decided for the plaintiff unless the defendant produces evidence to rebut it.

Protected Class

Groups of people who are legally protected from discrimination based on specific characteristics, such as race, gender, or age.

Equal Pay Act

It is a labor law that prohibits gender-based wage discrimination, mandating equal pay for equal work among male and female employees.

Legitimately Pay

To compensate or settle a financial obligation in a manner that is lawful and in accordance with agreed terms and conditions.