Discounted-cash-flow models focus on a project's cash inflows and cash outflows without regard to the time value of money.

Name: Discounted-cash-flow models focus on a project's cash inflows and cash outflows without regard to the time value of money.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Discounted-cash-flow models do take into account the time value of money by discounting future cash flows to their present value. This is done to account for the opportunity cost of tying up money in a project over time.

Discounted-Cash-Flow Models Focus on a Project's Cash Inflows and Cash