Question: For a particular projects cash flows, the appropriate nominal discount rate is 18%. The expected inflation rate is 4%. The appropriate real discount rate for

For a particular projects cash flows, the appropriate nominal discount rate is 18%. The expected inflation rate is 4%. The appropriate real discount rate for this type of project is approximately:

a.

11.08%

b.

13.46%

c.

14.89%

d.

12.41%

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