Equivalence is a condition that exists when
A)the value of a cost at one time is numerically equal to the value of the related benefits received at a different time.
B)the present worth of a cost equals the future worth of a cost at any point in time.
C)the present worth of all costs and benefits equals the future worth of these costs and benefits at any point in time.
D)the project breaks even, meaning costs equal benefits at a certain point in time.
E)a decision-maker assesses two sets of cashflows as equally attractive.

Question

Quizplus · Accepted Answer

Equivalence in financial terms often refers to a decision-maker assessing two sets of cashflows as equally attractive, meaning they have the same value or utility to the decision-maker.

Equivalence Is a Condition That Exists When