Another factor that can have a significant influence upon the discount rate used in life-cycle costing is the expected rate of ____.
A)inflation
B)depreciation
C)appreciation
D)devaluation

Question

Quizplus · Accepted Answer

Inflation can have a significant impact on the future value of money, therefore it is an important factor to consider when determining the discount rate used in life-cycle costing. As inflation increases, the value of money decreases over time, and the discount rate must be adjusted accordingly to reflect this.

Another Factor That Can Have a Significant Influence Upon the Discount