Future value measures:
A) what one or more cash flows are worth at the end of a specified period.
B) what one or more cash flows that is to be received in the future will be worth today.
C) both a and b
D) None of the above

Question

Quizplus · Accepted Answer

Future value measures what a cash flow or a series of cash flows will be worth at the end of a specified period, taking into account interest or investment returns. It does not consider the present value of future cash flows. Therefore, option A is correct while option B is incorrect. Option C suggests both A and B, which is not the case. Option D is incorrect as well.

Future Value Measures