When you compare or combine cash flows,you can only compare or combine them
A) at different present time points.
B) at one time point.
C) at different future time points.
D) none of the above.

Question

Quizplus · Accepted Answer

Cash flows can only be compared or combined at one time point, usually the present or future value of the cash flows. Comparing or combining cash flows at different present or future time points would not provide accurate information as the value of money changes over time due to factors such as inflation and interest rates.

When You Compare or Combine Cash Flows,you Can Only Compare