Which of the following cash flows is not considered when using the net present value method?
A)Future cash inflows.
B)Future cash outflows.
C)Past cash outflows.
D)Non-uniform cash inflows.
E)Future year-end cash flows.

Question

Quizplus · Accepted Answer

The net present value method only considers future cash inflows and outflows. It does not take into account past cash outflows, as they are not relevant to the decision being made. Non-uniform cash inflows are considered, as they can be discounted to their present value. Future year-end cash flows are also considered, as they can be discounted to their present value.

Which of the Following Cash Flows Is Not Considered When