When Making Capital-Budgeting Decisions, the Inflation Rate

When making capital-budgeting decisions, the inflation rate

A) should be ignored since it's impossible to know what future inflation rates will be.
B) is automatically considered because it equals the market rate.
C) is important, but it's impossible to estimate the effect on capital-budgeting decisions.
D) reduces the minimum desired rate of return on projects.
E) increases the minimum desired rate of return on projects.

Correct Answer:

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