In a hyperinflationary environment, how would you incorporate inflation into a capital budgeting analysis? Explain your methodology

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In a hyperinflationary environment, how would you incorporate inflation into a capital budgeting analysis? Explain your methodology in words to a manager who is worried about the power of capital budgeting when inflation is very high. How do increases in expected inflation affect the firm’s accept/reject decision at the margin?

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Corporate Finance

ISBN: 9780077173630

3rd Edition

Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe

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