In making a capital budgeting decision,one needs to compare cash flows in terms of their amounts and when they occur.One way to do so is to determine the

Question

Quizplus · Accepted Answer

Determining the present value allows for a comparison of cash flows that occur at different points in time by converting them to their equivalent present value. This is important in making a capital budgeting decision as it considers the time value of money and allows for a more accurate assessment of the profitability of the investment.

In Making a Capital Budgeting Decision,one Needs to Compare Cash