What Is the First Step in Applying the Net-Present-Value Method

question 109

Multiple Choice

What is the first step in applying the net-present-value method to investment projects?

• A)Identify the amount and timing of relevant future cash inflows.
• B)Identify the amount and timing of relevant future cash inflows and outflows.
• C)Find the present value of each expected cash flow.
• D)Find the discount rate to use for the project.

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