Question: Question 6 A project was evaluated and funded based on projections and discount rates that assumed 3.2 percent inflation. If inflation is higher in the

Question 6 A project was evaluated and funded based on projections and discount rates that assumed 3.2 percent inflation. If inflation is higher in the future than the assumed 3.2 percent, the most likely outcome is that the: a) holders of the company's fixed-rate bonds benefit. b) project's revenues minus costs will be higher than originally projected. c) value of depreciation tax savings is lower if the tax system does not adjust for inflation

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