If a given set of cash flows is expressed in nominal terms and discounted at the nominal rate, the resulting present value will be Blank______ the value obtained if the cash flows were expressed in real terms and discounted at the real rate. Multiple choice question. significantly smaller than larger than smaller than the same as

If a given set of cash flows is expressed in nominal terms and discounted at the nominal rate, the resulting present value will be Blank______ the value obtained if the cash flows were expressed in real terms and discounted at the real rate. Multiple choice question. significantly smaller than larger than smaller than the same as

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.12: Uneven, Or Irregular, Cash Flows

Problem 1ST

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Consider the calculation of an external rate of return (ERR). The positive cash flows in the cash flow profile are moved forward to t = n using what value of i in the (F|P,i,n–t) factors? a. 0 b. The unknown value of ERR (i′) c. MARR d. IRR.
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