(Sorry to bother you again - AFM exam 2 weeks tomorrow!)
John, in the examiner's answer to this question, why are the 4 years of operating cash flows left at their nominal amounts and not uplifted by the (differing) inflation rates given in the question?
Many thanks, Brian
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Accounting for inflation in DCF, December 2018 exam Q.3
5y ago#1The question does not say that the flows are at current prices and therefore the estimates must have already taken inflation into account.
The inflation only applies to the working capital.
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