In General, Present Value Methods of Analyzing Capital Investments Are

question 38

Multiple Choice

In general, present value methods of analyzing capital investments are more desirable than methods ignoring present values because:

• A) the calculations in methods that ignore present value are more complex than those in methods using present value.
• B) the present value methods consider that a dollar today is worth more than a dollar in the future due to the potential earning power of that dollar.
• C) the calculations in methods that consider present value are less complex than those methods ignoring present value.
• D) the present value methods consider that a dollar in the future is worth more than a dollar today due to the potential earning power of that dollar.

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