The value of any investment is found by computing the
A)present value of all future sales.
B)present value of all future liabilities.
C)future value of all future expenses.
D)present value of all future cash flows.

Question

Quizplus · Accepted Answer

The value of any investment is determined by calculating the present value of all future cash flows, which takes into account both inflows and outflows of cash over time. By discounting future cash flows to their present value, investors can make assessments about the attractiveness of an investment and whether it is a worthwhile opportunity. Therefore, the correct answer is D.

The Value of Any Investment Is Found by Computing the