Q
The effect of purchasing power or inflation on present value is important because _________?
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A
A. It increases the real value of cash flows received in the future
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B
B. It reduces the real value of cash flows received in the future
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C
C. It has no effect on real value of cash flow received in the future
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D
D. None of these
Correct Answer:
B. B. It reduces the real value of cash flows received in the future
