微信扫一扫
实时资讯全掌握
The management accountant at Jackman Co has been asked to produce a DCF appraisal of a new product line. The nominal WACC is 15%, inflation is 5% and all revenues and costs are expected to increase in line with inflation. Which of the following is the preferred approach? A. Make no adjustment to the annual cash flows and discount at 15%. B. Compute the expected revenues and costs for each year taking inflation into account, and then discount the cash flows at 15%. C. Make no adjustment to the annual cash flows and discount at 20.75%. D. Compute the expected revenues and costs for each year taking inflation into account, and then discount the cash flows at 20.75%. |