If we express money flows in current dollars ($A), the interest rate to use to determine present value in an economic analysis is the advertised interest rate in the market. True or False?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter5: Business And Economic Forecasting
Section: Chapter Questions
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If we express money flows in current dollars
($A), the interest rate to use to determine
present value in an economic analysis is the
advertised interest rate in the market.
True or False?
Transcribed Image Text:If we express money flows in current dollars ($A), the interest rate to use to determine present value in an economic analysis is the advertised interest rate in the market. True or False?
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