For a particular project’s cash flows, the appropriate nominal discount rate is 18%. The expected inflation rate is 4%.

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answerhappygod
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For a particular project’s cash flows, the appropriate nominal discount rate is 18%. The expected inflation rate is 4%.

Post by answerhappygod »

For a particular project’s cash flows, the appropriate nominal
discount rate is 18%. The expected inflation rate is 4%. The
appropriate real discount rate for this type of project is
approximately:
a.
11.08%
b.
13.46%
c.
14.89%
d.
12.41%
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