(Appendix 12A)The nominal method of NPV analysis adjusts future cash flows for the impact of inflation.

Name: (Appendix 12A)The nominal method of NPV analysis adjusts future cash flows for the impact of inflation.
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The nominal method of NPV analysis takes inflation into account by adjusting future cash flows for its impact. This is in contrast to the real method of NPV analysis, which uses constant dollars and does not adjust for inflation.

(Appendix 12A)The Nominal Method of NPV Analysis Adjusts Future Cash