Real cash flows must be discounted at real discount rate

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Which one of these statements is incorrect? Real cash flows must be discounted at a real discount rate. (1 + real rate of interest) = (1 + nominal rate of interest)/(1 + inflation rate) The actual real rate of interest almost equals "nominal rate of interest - inflation rate." Inflation rate = Nominal rate/Real rate - 1

Reference no: EM131072112

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