(Answered) Explain how inflation affects the rate of return required

Finance

Explain how inflation affects the rate of return required on an investment project, and also explain the distinction between a real and a nominal (or ‘money terms') approach to the evaluation of an investment project under inflation

A local city council subsidized college canteen service is to be evaluated by the local council to assess amongst other things, if it is financially sound and offers value for money.

Suggest appropriate measures of achievement that could be set for the service.

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