In the Net Present Value (NPV)method,pre-Tax Cash Flows Should Be

question 148

True/False

In the net present value (NPV)method,pre-tax cash flows should be used instead of after-tax cash flows when taxes are a consideration.

---

Definitions:

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell, under the assumption of other conditions being constant.

Demand Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good demanded by consumers.

Utility Function

A mathematical model in economics that ranks alternatives based on their utility or satisfaction levels to a consumer.

Price of X

The monetary value or cost assigned to a good or service, labeled as "X" as a placeholder for any specific item.