Asked by Ghefhine Casilao on May 17, 2024
Verified
If the present value of the cash ______________ exceeds the present value of the cash ________________ the investment should be rejected.
Present Value
The valuation today of an incoming stream of cash or one-time future payment, after accounting for a specified rate of return.
Cash Outflows
Money or cash disbursed by the business for various purposes, such as paying expenses, investing in assets, or repaying debts.
Cash Inflows
Money received by a business from its various activities, including sales, financing, and investments.
- Determine the viability of investments based on cash flow comparisons.
Verified Answer
Learning Objectives
- Determine the viability of investments based on cash flow comparisons.
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