Which of the following statements is FALSE?
A) Discounted cash flow models focus on future cash inflows and outflows.
B) Discounted cash flow models consider the time value of money.
C) Discounted cash flow models focus on net income.
D) Discounted cash flow models compare cash outflows today to the present value of future cash flows.

Question

Quizplus · Accepted Answer

Discounted cash flow models focus on future cash inflows and outflows and consider the time value of money. However, they do not focus on net income specifically. D is also true, as discounted cash flow models compare cash outflows today to the present value of future cash flows.

Which of the Following Statements Is FALSE