If a given set of cash flows is expressed in nominal terms and discounted at the nominal rate, the resulting present value will be the same as the value obtained if the cash flows were expressed in real terms and discounted at the Blank______. Multiple choice question. real rate crossover rate nominal rate rate of inflation

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter15: Capital Investment Analysis
Section: Chapter Questions
Problem 3SEQ: The expected period of time that will elapse between the date of a capital investment and...
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If a given set of cash flows is expressed in nominal terms and discounted at the nominal rate, the resulting present value will be the same as the value obtained if the cash flows were expressed in real terms and discounted at the Blank______.

Multiple choice question.

real rate

crossover rate

nominal rate

rate of inflation

 

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