The measurement of an asset's value that considers the discounted future cash inflows (and outflows)relating to the asset is called the
A)net realizable value
B)current cost
C)historical value
D)present value

Question

Quizplus · Accepted Answer

The measurement that considers the discounted future cash inflows (and outflows) is the present value. This is commonly used in financial analysis and is important when making investment decisions. The other options, net realizable value, current cost, and historical value, do not take into account future cash flows and are more focused on the current state or past events of the asset.

The Measurement of an Asset's Value That Considers the Discounted