What are the three factors that affect the present value of future cash flows?
A)timing, magnitude, and size
B)timing, magnitude, and risk
C)date cash flows are received, date stock was purchased, and taxes
D)type of cash flows, size of firm, and amount

Question

Quizplus · Accepted Answer

The present value of future cash flows is affected by the timing of the cash flows, the magnitude or size of the cash flows, and the risk associated with the investment. Options A, C, and D do not accurately reflect the factors that affect the present value of future cash flows.

What Are the Three Factors That Affect the Present Value