When the purchasing team at PDQ Plastics Inc. recalculates the value of future income to be earned by a new molding machine into today's dollars, they are:
A)quantifying qualitative information.
B)measuring opportunity costs.
C)discounting the cash flows.
D)calculating ROI.
E)reducing the payback period.

Question

Quizplus · Accepted Answer

When the purchasing team at PDQ Plastics Inc. recalculates the value of future income to be earned by a new molding machine into today's dollars, they are discounting the cash flows. This involves adjusting future cash flows to their present value by accounting for the time value of money.

When the Purchasing Team at PDQ Plastics Inc