Which of the Following Statements Is FALSE About Valuing Cash

question 61

Multiple Choice

Which of the following statements is FALSE about valuing cash at different points in time?

• A) The process of moving forward along the timeline to determine a cash flow's value in the future is known as compounding.
• B) The effect of earning interest on interest is known as compound interest.
• C) It is only possible to compare or combine values at the same point in time.
• D) A dollar in the future is worth more than a dollar today.

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