(Appendix 12A)The Nominal Method of NPV Analysis Adjusts Future Cash

question 97

True/False

(Appendix 12A)The nominal method of NPV analysis adjusts future cash flows for the impact of inflation.

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Definitions:

Preexisting Duty Rule

A principle in contract law stating that performing or promising to perform a duty already owed under contract does not constitute valid consideration for a new promise.

Unforeseen Difficulties

Unexpected challenges or obstacles that were not anticipated, making a task or goal harder to achieve.

Preexisting Duty

An obligation that a party is already legally bound to perform, which cannot serve as consideration for a new contract.

Foreseen Difficulty

An anticipated challenge or problem that can be predicted based on current knowledge or trends.