The rate used to adjust future cash flows to determine their value in present period terms is the

Question

Quizplus · Accepted Answer

The cost of capital is the correct answer because it represents the rate of return that a company needs to achieve in order to justify the cost of a capital project, such as an investment or a purchase. This rate is used to discount future cash flows to their present value, allowing for the assessment of the value of future earnings in today's terms.

The Rate Used to Adjust Future Cash Flows to Determine