In order to analyze costs and benefits that are paid and received at different times, they must be valued at _______in time as funds received or paid in the future are worth _______than the same amount received or paid today.
A)different points; less
B)a single point; more
C)a single point; less
D)different points; more

Question

Quizplus · Accepted Answer

To analyze costs and benefits that are paid and received at different times, they must be valued at a single point in time. This is because comparing costs and benefits with different time values is like comparing apples and oranges. Also, funds received or paid in the future are worth less than the same amount received or paid today due to factors such as inflation and uncertainty. Therefore, the correct option is C, which states that the costs and benefits must be valued at a single point in time, and that funds received or paid in the future are worth less than the same amount received or paid today.

In Order to Analyze Costs and Benefits That Are Paid