Personal preferences for cash flow should not affect the decision-making process. A manager should decide based on always maximising the net present value (NPV).

Question

Quizplus · Accepted Answer

Maximising the net present value is the primary objective of any financial decision-making process. Personal preferences for cash flow, such as receiving money earlier rather than later, should not influence the decision-making process as it might negatively affect the net present value.

Personal Preferences for Cash Flow Should Not Affect the Decision-Making