When projected cash flows are in nominal dollars,they should be discounted with a nominal discount rate.

Name: When projected cash flows are in nominal dollars,they should be discounted with a nominal discount rate.
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When projecting cash flows in nominal dollars, the discount rate should also be nominal in order to maintain consistency and account for inflation. Using a real discount rate could lead to incorrect calculations of the present value.

When Projected Cash Flows Are in Nominal Dollars,they Should Be