Explain how you might analyze a capital budgeting decision where the cash flow data
are nominal (including expected inflation of,say,4 percent per year)but the quoted
cost of capital of 12 percent per year is real (excluding anticipated inflation).

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The Answer of Explain how you might analyze a capital budgeting decision where the cash flow data
are nominal (including expected inflation of,say,4 percent per year)but the quoted
cost of capital of 12 percent per year is real (excluding anticipated inflation).

Explain How You Might Analyze a Capital Budgeting Decision Where