When computing project cash flows,it is necessary to apply the same rate of inflation to all costs and revenues.

Question

Quizplus · Accepted Answer

It is not necessary to apply the same rate of inflation to all costs and revenues. Different costs and revenues may be subject to different rates of inflation depending on their nature and the economic environment. It is important to properly identify and consider the inflation rate that is relevant to each cost and revenue item.

When Computing Project Cash Flows,it Is Necessary to Apply the Same