Which of the following methods will provide a correct analysis for capital budgeting purposes?

A) discounting real cash flows with nominal rates.
B) discounting real cash flows with real rates.
C) discounting nominal cash flows with real rates.
D) all of the above methods will provide similar results.

Ans: B) discounting real cash flows with real rates.

Business

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The lack of cultural guidebooks and research specifically for international managers poses a significant problem for global firms

Indicate whether the statement is true or false

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