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John Moffat.
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humai
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A project consists of a series of cash outflows in the first few years followed by a series of positive cash inflows.The total cash inflows exceed the total cash outflows.The project was originally evaluated assuming a zero rate of inflation.If the project were re-evaluated on the assumption that the cash flows were subject to a positive rate of inflation,what would
be the effect on the payback period and the IRR?whether they will increase or decrease?
John Moffat
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Tell me what you think the answer is!
(With positive inflation the cash flows will be higher)
humai
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