## Info

70,418 BR

The net present value of 70.418 million BR suggests that this is a good project for Aracruz to take on.

The analysis was done entirely in real terms, but using nominal cashflows and discount rate would have had no impact on the net present value. The cashflows will be higher because of expected inflation but the discount rate will increase by exactly the same magnitude, thus resulting in an identical net present value. The choice between nominal and real cash flows therefore boils down to one of convenience. When inflation rates are low, it is better to do the analysis in nominal terms since taxes are based upon nominal income. When inflation rates are high and volatile, it is easier to do the analysis in real terms or in a different currency with a lower expected inflation rate.

## Lessons From The Intelligent Investor

If you're like a lot of people watching the recession unfold, you have likely started to look at your finances under a microscope. Perhaps you have started saving the annual savings rate by people has started to recover a bit.

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