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NPV real coc/nominal coc

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › NPV real coc/nominal coc

  • This topic has 1 reply, 1 voice, and was last updated 53 minutes ago by HarisAli.
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  • December 4, 2025 at 6:35 pm #723830
    HarisAli
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    • Topics: 2
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    • ☆

    Came across a question (section c), it had different inflation for sales, v.c and f.c, they also gave us a general inflation rate, gave both money cost of capital and real cost of capital, clear my confusion on this because i thought regarding real rate we dont inflate cashflows and outflows, but in the answer (they required both npvs, using nominal and real c.o.c) the did nominal npv using the specifc inflation rates and for real npv they used general inflation rate to inflate cashflows and outflows.

    December 4, 2025 at 6:39 pm #723831
    HarisAli
    Participant
    • Topics: 2
    • Replies: 1
    • ☆

    and in another question only a general inflation rate is given and that is used to calculate nominal/money npv, and real npv is calculated without inflation

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