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The computation of the current value of an asset using the present value of future cash...

The computation of the current value of an asset using the present value of future cash flows method does not include the

A. Productive life of the asset.

B. Applicable interest rate.

C. Future amounts of cash receipts or cash savings.

D. Cost of alternate uses of funds given up.

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Answer #1

While computing the current value of an asset using the present value of future cash flows method does not include:

D) Cost of alternate uses of funds given up.

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