Which of the following are steps needed for using the net present value method for making long-term decisions using discounted cash flows?

Question

Quizplus · Accepted Answer

All of the steps listed are necessary for using the net present value method for making long-term decisions using discounted cash flows. First, future cash inflows and outflows need to be estimated for each alternative under consideration. Next, these future cash flows need to be discounted to the present using the project's discount rate. Finally, the proposed project needs to be either accepted or rejected, or one project needs to be selected from a set of mutually exclusive projects.

Which of the Following Are Steps Needed for Using the Net