In the net present value method,the world of certainty assumption means that ________.
A)the predicted cash inflows and cash outflows are certain to occur at the times specified
B)the predicted cash inflows and cash outflows are sunk costs
C)the predicted cash inflows and cash outflows are opportunity costs
D)all investments are equal in value

Question

Quizplus · Accepted Answer

The world of certainty assumption means that the predicted cash inflows and cash outflows are certain to occur at the times specified. This assumption simplifies calculations and helps in decision making.

In the Net Present Value Method,the World of Certainty Assumption