Cash flows for a capital budgeting analysis are often affected by inflation, but not by deflation.

Name: Cash flows for a capital budgeting analysis are often affected by inflation, but not by deflation.
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Cash flows for a capital budgeting analysis can be affected by both inflation and deflation. Inflation can increase costs and decrease the purchasing power of cash flows, while deflation can decrease costs and increase the purchasing power of cash flows.

Cash Flows for a Capital Budgeting Analysis Are Often Affected