Which of the following cash flows is not considered when using the net present value method?
A) Future cash inflows.
B) Future cash outflows.
C) Past cash outflows.
D) Non-uniform cash inflows.
E) All of these are considered.

Question

Quizplus · Accepted Answer

The net present value method only considers future cash flows, as the goal is to determine the present value of a project or investment. Past cash outflows are already sunk costs and cannot be changed, so they are not relevant to the analysis. Future cash inflows and outflows are considered, and non-uniform cash flows can be accounted for using various techniques such as the discounted cash flow method.

Which of the Following Cash Flows Is Not Considered When