Even if the money rate is th'- easiest to forecast it may, on occasions,
be advantageous to convert it to real terms and use double discounting,
as this procedure could provide more meaningful figures of project
cash fiows for use when considering the desirability of projects with
important incommensurate and confiicting elements. This point, again,
does not invalidate the basic concepts developed in this paper, and the
double discounting model would provide the same net present value
signals as would the use of monetary rates to discount monetary fiows.
Infiation and Capital Budgeting Decisions: a Comment 155
Wilkes' paper can be claimed to usefully develop the thinking on the
problem of the treatment of infiation in capital budgeting, and to provide
a practical basis for net present value calculations under fairly conventional
assumptions.