Which of the Following Cash Flows Is Not Considered When

question 41

Multiple Choice

Which of the following cash flows is not considered when using the net present value method?

• A) Future cash inflows.
• B) Future cash outflows.
• C) Past cash outflows.
• D) Nonuniform cash inflows.
• E) Cash inflow from the sale of the asset.

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Definitions:

Bananas

A widely consumed fruit, grown in tropical regions, known for its high potassium content.

Opportunity Cost

The cost of foregoing the next best alternative when making a decision, representing the benefits one misses out on.

Production Possibilities Schedule

A table or graph showing the different quantities of two goods that can be produced using the same resources fully and efficiently.

Steel

A hard, strong alloy of iron with carbon and usually other elements, used extensively as a structural and fabricating material.