If Cash Flow Projections Include the Effect of Inflation Then

question 32

Short Answer

If cash flow projections include the effect of inflation then the discount rate used should be a(n)____________________ rate.

---

Definitions:

Inventory

Materials and products that a business keeps for the ultimate goal of resale or processing.

Return On Investment

A performance measure used to evaluate the efficiency or profitability of an investment relative to the amount of money invested.

Investment Opportunity

A potential situation where an individual or organization can invest capital with the expectation of achieving a return.

Profit Center

A business unit or division that is responsible for generating its own revenue and profit, with its financial performance being tracked separately.