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Nominal cash flow

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Nominal cash flow
A cash flow expressed in nominal terms if the actual dollars to be received or paid out are given.
Nominal cash flow
Cash flow in absolute terms without adjusting for inflation. In the short term, nominal cash flow equates to real cash flow, but if a cash flow remains that same in a period of high inflation, this results in a real loss for the person or company receiving a cash flow and a real gain for the one giving it.


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