When financial managers compare different investments with cash flows over a period of time, they take the time value of these cash flows into account by converting them into their present values.

Question

Quizplus · Accepted Answer

This is true. Financial managers use present value calculations to compare investments with cash flows over different time periods. The time value of money is taken into account by discounting future cash flows back to their present values using an appropriate discount rate.

When Financial Managers Compare Different Investments with Cash Flows Over