If an analyst desires a conservative net present value estimate,he/she will assume that all cash inflows occur at

Question

Quizplus · Accepted Answer

Assuming all cash inflows occur at year-end is a conservative approach as it delays the recognition of cash inflows, resulting in a lower present value estimate. This approach assumes that cash flows are received at the end of each period, which means the project must wait until the end of the year to receive any cash.

If an Analyst Desires a Conservative Net Present Value Estimate,he/she