L6M5 practice question 9 of 15
Why would a company use a discounted cash flow in calculating an Investment Appraisal? Select all that apply
Full set: 83 questionsCorrect Answer:
D. to account for the time value of money; E. to accurately compare two projects which will last a different number of years
Explanation
Discounted cash flow accounts for the time value of money and allows for an accurate comparison of projects with different durations.
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