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INFLATION AND CAPITAL BUDGETING

INFLATION AND CAPITAL BUDGETING. INFLATION IS THE INCREASE IN THE GENERAL LEVEL OF PRICES FOR ALL GOODS AND SERVICES IN AN ECONOMY. NOMINAL VS. REAL. NOMINAL VALUES ARE THE ACTUAL AMOUNT OF MONEY MAKING UP CASH FLOWS REAL VALUES REFLECT THE PURCHASING POWER OF THE CASH FLOWS

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Risk pertains - PowerPoint PPT Presentation

INFLATION AND CAPITAL BUDGETING