Clarification

Hi John,

Thanks for all your help and assistance over the past few weeks. Exam
finally done and dusted, fingers crossed

You might clear something up. There was an NPV question. They gave a rate of 6% for a loan that was to be used specifically for the project but they also gave the nominal rate with specific inflation rates. I used the nominal rate, was I wrong? Should I have used the project specific 6% rate to discount it? They also had a real rate thrown in there.

They asked you to comment on it and discuss why you chose the rate you did! I’m doubting myself now ?

Thanks
Graham