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NOMINAL RATE RETURN

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1) Explain the calculation of a project's net salvage value.

2) What is the relationship between the nominal rate of return, the real rate of return, and the rate of inflation?

3) Why is it important to recognize and exclude sunk costs from a capital budgeting analysis?

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The expert explains the calculations of a project`s net salvage value. The relationship between the nominal rate of return are determined.

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1) A project's net salvage value equals the total after-tax cash flows that have been received or spent when the project is being terminated.

2) The relationship between nominal ...

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