Discounting cash flows involves: A. taking the cash discount offered on a trade merchandise B. estimating...
Discounting cash flows involves:
A. taking the cash discount offered on a trade merchandise
B. estimating only the cash flows that occur in the first 4 years of a project.
C. present value of the investment's future cash flows minus the investments's cost.
D. next decrease in value caused by waiting to receive the cash benefit fro the investment.
E. value received at th end of the investment period minus the investment's cost.
Homework Answers
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correct answer is option : C. present value of the investment's future cash flows minus the investments's cost.
Discounted cash flow = Present value of cash inflow - present value of cash outflow where in discounting rate is required rate of return of the project.
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