(Appendix 12A)The tax savings cash flows are treated differently under the nominal and real methods. Which of the following reflects this treatment? Real Nominal

Question

Quizplus · Accepted Answer

In the real method, tax savings cash flows are deflated to remove the effects of inflation, while in the nominal method, they are used as is, reflecting the current dollar value without adjusting for inflation.

(Appendix 12A)The Tax Savings Cash Flows Are Treated Differently Under