Question: Which of the following statement is correct? When analyzing a project, if the expected future cash flows are denominated in nominal dollars, then the discount

Which of the following statement is correct?

When analyzing a project, if the expected future cash flows are denominated in nominal dollars, then the discount rate should represent a real rate.

When evaluating a project, we consider all of the investors in the firm, hence we should evaluate the pretax cash flows produced by a project.

Free cash flow equals cash flow from operations minus required investments.

Accounting earnings are a reliable measure of the costs and benefits of a project.

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