When computing the net present value of a capital project

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Which one of these is a requirement when computing the net present value of a capital project?

The discount rate used must be a nominal rate.

The discount rate must be stated in real terms.

Nominal cash flows must be discounted using a real rate.

Real cash flows must be converted to nominal cash flows.

Real cash flows must be discounted using a real rate.

Reference no: EM131022539

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