M&A practitioners utilize nominal cash flows except in circumstances of high rates of inflation, when real cash flows are preferable.

Question

Quizplus · Accepted Answer

Nominal cash flows are cash flows that are not adjusted for inflation, while real cash flows are adjusted for inflation. M&A practitioners typically use nominal cash flows, except in situations with high rates of inflation, where real cash flows are more suitable.

M&A Practitioners Utilize Nominal Cash Flows Except in Circumstances of High