Discounted cash flow techniques consider the time value of money.

Name: Discounted cash flow techniques consider the time value of money.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

Discounted cash flow techniques involve calculating the present value of future cash flows by considering the time value of money, which means that money earned or spent at different points in time has different values. This is why the future cash flows are discounted to their present values using a discount rate that accounts for the opportunity cost of capital.

Discounted Cash Flow Techniques Consider the Time Value of Money