Question

Consider the following cash flows on two mutually exclusive projects.
The cash flows of Project A are expressed in real terms while those of Project B are expressed in nominal terms. The appropriate nominal discount rate is 11 percent and the inflation rate is 4 percent. Which project should you choose?


$1.99
Sales1
Views38
Comments0
  • CreatedOctober 01, 2015
  • Files Included
Post your question
5000