If You Are Discounting a Project's Cash Flows Using the Nominal

question 42

Multiple Choice

If you are discounting a project's cash flows using the nominal cost of capital, then that means that you have taken the following into account:

• A) the real rate of return.
• B) the expected rate of inflation.
• C) Both of the above.
• D) None of the above.

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Definitions:

Repertoire

A collection or set of skills, techniques, or knowledge that an individual can employ.

Alternative Behaviors

Different actions or reactions that can be chosen or adopted in response to a given situation or condition.

Desired Outcome

The specific, intended result or effect of an action, intervention, or process, often set as a goal or objective.

Cephalin

A class of phospholipids found in animal and plant tissues, important for the building of cell membranes.