Asked by The Broccoli Industry on Apr 27, 2024
Verified
The excess of the cash flowing in from revenues over the cash flowing out for expenses is termed net discounted cash flow.
Net Discounted Cash Flow
The value of all future cash flows of a project or investment after being discounted to the present value, reflecting both time and risk.
Cash Flowing
The movement of money in and out of a business, representing its operational liquidity.
Expenses
Costs incurred during the operation of a business that are necessary for generating revenue, such as rent, salaries, utilities, and materials.
- Differentiate between net cash flow and net discounted cash flow.
Verified Answer
AW
Allie WinkleMay 01, 2024
Final Answer :
False
Explanation :
The excess of cash flowing in from revenues over the cash flowing out for expenses is simply referred to as net cash flow. Net discounted cash flow takes into account the time value of money by discounting future cash flows to their present value.
Learning Objectives
- Differentiate between net cash flow and net discounted cash flow.