One definition of the value of an economic asset is given by:
A) The present value of the asset's future cash flows.
B) The historic cost of the asset.
C) The remaining undepreciated cost of the asset.
D) The balance sheet valuation of that asset.

Question

Quizplus · Accepted Answer

The value of an economic asset is often defined as the present value of the asset's future cash flows. This approach reflects the asset's potential to generate income in the future, discounted back to its value in today's terms.

One Definition of the Value of an Economic Asset Is