- CFA Exams
- CFA Exam: Level II 2021
- Study Session 7. Corporate Finance (1)
- Reading 19. Capital Budgeting
- Subject 1. Cash flow projections

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**CFA Practice Question**

Which of the following statements is true?

B. Nominal cash flows are discounted using the real discount rate.

C. Real cash flows are discounted using the nominal discount rate.

A. Nominal cash flows are discounted using nominal discount rate.

B. Nominal cash flows are discounted using the real discount rate.

C. Real cash flows are discounted using the nominal discount rate.

Correct Answer: A

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