Which of the Following Statements Is True of Discounted Future

question 66

Multiple Choice

Which of the following statements is true of discounted future net cash flow?

• A)It requires that difference in the cash inflows and outflows of a business be projected for some period of subsequent time.
• B)It involves accounting for all of the hard assets of an organization such as buildings, equipment, cash, etc.
• C)It is determined by the nature of business, including longevity, business risk, consistency of earning, quality of management, and general economic conditions.
• D)It involves taking the earnings of a business and multiplying that figure by the market premium of companies in their industry.

---

Definitions:

Century Ago

A term referencing a time period of 100 years in the past from the current date.

Western Europe

A region comprising the western part of Europe, known for its developed economies, democratic governments, and high standards of living.

Affirmative Action

Policies that support members of disadvantaged groups that have previously suffered discrimination in areas like education and employment.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases involving matters of federal law.