Question No: 1 ( Marks: 1 ) - Please choose one
Feb 02, 2008 · Real discount rate = 1 + Nominal discount rate - 1 . 1 + inflation rate . With this real discount rate the Cash Inflows are discounted to find NPV. 3) Pay back reciprocal = Average annual cash inflows (It is used for reasonable approximation of. Initial Investment IRR) 4) The formula … ................
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