To be compatible,all costs and benefits should use the current value of money since variations over time will (a)not affect the return on investment and (b)it is difficult (or impossible)to estimate future value of money.

Question

Quizplus · Accepted Answer

Using the current value of money for all costs and benefits in analysis ignores the time value of money, which is crucial for accurately assessing the return on investment over time. Future values can indeed be estimated using techniques like discounting, making it possible to compare costs and benefits occurring at different times.

To Be Compatible,all Costs and Benefits Should Use the Current