The financial manager has to determine a value to uncertain cash flows.The variables involved in this determination are:

Question

Quizplus · Accepted Answer

All three variables (amount, timing, and risk) are critical in determining the value of uncertain cash flows. The amount and timing of cash flows directly impact their present value, while the level of risk associated with the cash flows influences the discount rate used to calculate their present value. Therefore, all of the choices are correct.

The Financial Manager Has to Determine a Value to Uncertain