The expected cash flow approach encompasses all of the following features in determining a present value of an asset or liability except ________.
A) the market rate of interest
B) a range of estimated future cash flows
C) the fair value of the asset or liability
D) the probabilities of various cash-flow outcomes

Question

Quizplus · Accepted Answer

The expected cash flow approach focuses on estimating future cash flows and their probabilities, and applying the market rate of interest to determine present value. It does not directly determine the fair value of the asset or liability.

The Expected Cash Flow Approach Encompasses All of the Following