Because "Present Value" Refers to the Value of Cash Flows

question 8

True/False

Because "present value" refers to the value of cash flows that occur at different points in time, a series of present values of cash flows should not be summed to determine the value of a capital budgeting project.

---

Definitions:

Platelets

Cell fragments in vertebrate blood that function in clotting; also called thrombocytes.

Erythrocytes

Red blood cells that transport oxygen from the lungs to tissues throughout the body and return carbon dioxide back to the lungs for exhalation.

Leukocytes

White blood cells; colorless amoeboid cells that defend the body against disease-causing organisms.

Hemoglobin

A protein in red blood cells responsible for transporting oxygen from the lungs to the rest of the body and carbon dioxide back to the lungs.