According to the principle of asset valuation,the value of any asset is equal to

Question

Quizplus · Accepted Answer

The principle of asset valuation states that the value of an asset is equal to the sum of the present values of all the future net benefits it generates. This means that the future cash flows generated by the asset are discounted to the present using an appropriate discount rate, and then summed up to arrive at the asset's value. Choice A is too simplistic, as it doesn't take into account the time value of money. Choice B is incorrect, because the revenue generated in the first year is not a reliable indicator of the asset's long-term value. Choice D and E are incorrect, as they don't take into account the entire stream of future benefits generated by the asset.

According to the Principle of Asset Valuation,the Value of Any