Which of the Following Are Ways That Inflation Impacts the Capital

question 38

Multiple Choice

Which of the following are ways that inflation impacts the capital budgeting process?
I.Inflation affects future expected cash flows.
II.Inflation is reflected in the firm's discount rate.
III.Inflation increases the general price level.

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

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