Steps used in applying the net present value method to a proposed capital investment do NOT include ________.
A) identify the amount and timing of relevant expected cash inflows and outflows
B) find the present value of each expected future cash inflow and outflow
C) find the sum of the present values of each expected future cash inflow and outflow
D) find the future value of the cash outflow that occurs at the present time.

Question

Quizplus · Accepted Answer

Finding the future value of a cash outflow that occurs at the present time is not necessary in the net present value method as all cash flows are discounted to their present values.

Steps Used in Applying the Net Present Value Method to a Proposed