In a Capital Budgeting Analysis, Nominal Cash Flow Is Generally

question 90

Multiple Choice

In a capital budgeting analysis, nominal cash flow is generally calculated as:

• A) Real cash flow × (1 + inflation rate)^t
• B) Real cash flow / (1 + inflation rate)^t
• C) Real cash flow ^{(1 + inflation rate)×t}
• D) (1 + inflation rate) × t × real cash flow

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