5 Step approach to combined nominal and real terms financial projections terms

CFA4Techie

Hi,
I'm confused as to why we initially switch the projections into real terms (step # 1) and then go right back and switch it to nominal terms (step # 2)
Any thoughts would be appreciated.

Pegasus2008

Still confused about it, anyone?

thecfawannabe

Well, in step 1, we put all the components in real terms (from nominal)
then in step 2, we convert it back to nominal.
I don't understand why we do that

bdavi77962

I had similar question before. I think the switch is that in order forcast Nominal FC Inv, we need to find real FC inv first.
I learnd it from schweser, not sure how the book does it.

sry man, i may have misread your question.



Edited 1 time(s). Last edit at Sunday, May 29, 2011 at 12:16PM by passme.

random_walker47

i hope so too stingreye
thanks for the clarification