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important point

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › important point

  • This topic has 1 reply, 2 voices, and was last updated 13 years ago by John Moffat.
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  • April 15, 2012 at 8:38 am #52220
    shary
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    i have a question
    that when we use nominal rate and real rate in investment appraisal queation

    April 16, 2012 at 5:38 am #96329
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54693
    • ☆☆☆☆☆

    You use nominal rate when you are discounting the actual cash flows.

    You use the real rate when you are discounting flows given at current prices.

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