Positive taxable income and assets book value exceeds

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The net cash flow from the sale of an asset will exceed the asset's sale price when a firm has positive taxable income and the asset's book value exceeds its market value. True or False

When the real rate of interest is less than the nominal rate of interest, then: (choose one)

A: disinflation must be occurring

B: investment returns cannot increase the purchasing power of an investment

C: nominal cash flows should be discounted with real rates.

D: the rate of inflation must be positive

Reference no: EM13917286

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