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Q1. what is general inflation. if nominal rate and general inflation is given which we will use to discount and why?
Q2.please clarify when to use nominal rate and when to use real rate.What you are asking is in fact revision from Paper F9, and so if you were exempt from F9 or have forgotten what you learned for F9 then I do suggest that you watch my free F9 lectures on investment appraisal with inflation.
All of what you have asked is explained in my lectures, and I cannot possibly type out all of my lectures here 🙂
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