Assume that the annual revenues increase at the expected


Question: Assume that the annual revenues increase at the expected inflation rate of 5 percent and that accounts receivable are 10 percent of the annual revenues. What is the impact of the expected positive inflation rate on the present value of the cash receipts, relative to an expected inflation rate of 0 percent? Is the impact positive, negative, or unchanged?

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Accounting Basics: Assume that the annual revenues increase at the expected
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