Before You Can Calculate the Present Value of a Cash

question 60

Multiple Choice

Before you can calculate the present value of a cash flow,you must

• A)Identify the amount and timing of each cash flow
• B)Determine the appropriate discount rate
• C)Both identify the amount and timing of each cash flow and determine the appropriate discount rate
• D)Neither identify the amount and timing of each cash flow nor determine the appropriate discount rate

---

Definitions:

Policy Alternatives

Various strategies or plans of action that policy-makers can consider and potentially implement to address specific public issues.

Scientific Study

A systematic and objective investigation conducted to acquire knowledge and understand natural phenomena through observation and experimentation.

Positive Economic Statement

An objective statement based on fact that can be tested and validated.

Government Spending

Expenditures made by the government for its operations, programs, and public services.