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.

random_walker47

i hope so too stingreye
thanks for the clarification

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.

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

Pegasus2008

Still confused about it, anyone?