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Deflation in Prices Will Have a ________ Impact on the NPV

Question 37

Multiple Choice

Deflation in prices will have a ________ impact on the NPV of a project by:


A) negative; reducing the value of the future cashflows.
B) zero; not being able to re-adjust your cashflow estimates.
C) Negative; increasing the current cost of the investment.
D) positive; increasing the value of future cashflows.

Correct Answer:

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