By the capitalization of cash flow method, the value of an asset is a function of ____________.
A) the book value of the asset
B) required rate of return
C) the age of the asset
D) All of these are correct

Question

Quizplus · Accepted Answer

The capitalization of cash flow method values an asset based on the expected cash flows it will generate in the future, discounted at a required rate of return. The book value of the asset and its age are not the primary factors considered in this method.

By the Capitalization of Cash Flow Method, the Value of an Asset