Question: Two methods can be used to incorporate the effects of inflation or deflation into an NPV analysis. In your own words, explain how a nominal
Two methods can be used to incorporate the effects of inflation or deflation into an NPV analysis. In your own words, explain how a nominal discount rate is different from a real discount rate. Why are analyses using the nominal approach potentially more accurate than those using the real approach?
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A nominal discount rate includes a factor for inflation and the real rate does not Both rates in... View full answer
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