Real cash flows must be discounted at a real discount rate

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Reference no: EM13922967

Which one of these statements is incorrect?

a) Real cash flows must be discounted at a real discount rate.

b) (1 + real rate of interest) = (1 + nominal rate of interest)/(1 + inflation rate)

c) The actual real rate of interest almost equals "nominal rate of interest - inflation rate."

d) Inflation rate = Nominal rate/Real rate – 1

Reference no: EM13922967

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