The effect of purchasing power or inflation on present value is important because?

A. It increases the real value of cash flows received in the future
B. It reduces the real value of cash flows received in the future
C. It has no effect on real value of cash flow received in the future
D. None of these

Right Answer: It reduces the real value of cash flows received in the future

January 17, 2018   Asghar Khan    Finance  
Total 3 Votes:
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