suppose the firm's WACC is stated in nominal terms (meaning that inflation expectations are included in the WACC), but the project's expected cash flows are expressed in real dollars (meaning they are not adjusted upward for inflation expectations). In this situation, other things held constant and assuming a positive rate of inflation, the calculated NPVwould

An investment requires a total return that comprises: O a real rate of return and compensation for inflation. a real rate of return, compensation for inflation, and a risk premium. compensation for inflation and a risk premium. a real rate of return, compensation for inflation, a risk premium, and compensation for time and effort devoted to researching alternative investments. None of the above

When the underlying riskiness of free cash flows (FCF) decreases, the value of the project O increases stays the same decreases

Certainty Equivalent Cash flow (CEQ) is obtained through converting the expected cash flows by a ______ shift of risk. If we discount the CEQ by the time value of money, we will have the present value _______ discounting future cash flow by time and risk discounting factor. Therefore, CEQ is always ______ than the expected cash flow. Find the correct choice to fill the blanks. A. time varying, same as, lowerB. constant, same as, lower C. time varying, higher than, lowerD. constant, same as, higher