The future value of $1 table should be used to discount lump sum cash flows expected to occur in the future.

Name: The future value of $1 table should be used to discount lump sum cash flows expected to occur in the future.
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Question

Quizplus · Accepted Answer

The future value of $1 table is used to calculate the future value of a lump sum cash flow, not to discount future cash flows. The present value of $1 table should be used to discount future cash flows.

The Future Value of $1 Table Should Be Used to Discount