Quiz Ch 11 – T/F Inappropriateness of Summing Present Values for Capital Budgeting Projects

Fundamentals of Financial Management, Concise

Brigham and Houston

09th Edition

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True or false: Adding individual present values of cash flows occurring at various time points should not be used to calculate the value of a capital budgeting project due to the concept of "present value" considering cash flows over time.

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  • Search Terms: a. b. false true "present a at be because budgeting capital cash determine different flows in not occur of points present project. refers series should summed that the time, to value value" values
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