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When Should an Analyst Use Nominal Cash Flows and When

question 59

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When should an analyst use nominal cash flows and when should an analyst use real cash flows?


Definitions:

Nonlinear

Describes relationships in data or equations where there is not a straight-line or proportional association between variables.

Spread

A statistical term referring to the range or distribution of a set of values.

Age

The length of time that a person or object has existed or the period since an object’s creation or a person’s birth.

Price

The amount of money required to purchase something or the value that is ascribed to a good or service.

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