24 The likely effect of discounting nominal cash flows with real interest rates will be to: A make an investment's NPV appear less attractive. B make an investment's NPV appear more attractive. C correctly calculate an investment's NPV, regardless of expected inflation. D. correctly calculate an investment's NPV if inflation is expected.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 13MC: Which of the following discounts future cash flows to their present value at the expected rate of...
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24 The likely effect of discounting nominal cash flows with real interest rates will be to:
A
make an investment's NPV appear less attractive.
B.
make an investment's NPV appear more attractive.
C
correctly calculate an investment's NPV, regardless of expected inflation.
D correctly calculate an investment's NPV if inflation is expected.
OA
OB
о с
OD
Transcribed Image Text:24 The likely effect of discounting nominal cash flows with real interest rates will be to: A make an investment's NPV appear less attractive. B. make an investment's NPV appear more attractive. C correctly calculate an investment's NPV, regardless of expected inflation. D correctly calculate an investment's NPV if inflation is expected. OA OB о с OD
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