Which one of these is a requirement when computing the net present value of a capital project?
A) The discount rate used must be a nominal rate.
B) The discount rate must be stated in real terms.
C) Nominal cash flows must be discounted using a real rate.
D) Real cash flows must be converted to nominal cash flows.
E) Real cash flows must be discounted using a real rate.
Correct Answer:
Verified
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