To measure value, the concept of time value of money is used a. To determine the interest rate paid on corporate debt. b. To bring the future benefits and costs of a project, measured by its expected profits, back to the present. c. To bring the future benefits and costs of a project, measured by its cash flows, back to the present. d. To ensure that expected future profits exceed current profits today

Question

Cannoli

Business

17 January, 03:05

To measure value, the concept of time value of money is used a. To determine the interest rate paid on corporate debt. b. To bring the future benefits and costs of a project, measured by its expected profits, back to the present. c. To bring the future benefits and costs of a project, measured by its cash flows, back to the present. d. To ensure that expected future profits exceed current profits today

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Myers · Answer 1

The correct answer to the following question will be Option C.

Explanation:

The time value of money seems to be the method used mostly for estimating the current value including all possible retained earnings. Those are classified underneath the strategies of capital budgeting. It's being used to know whether the project is feasible. It measures up the preliminary project expense to future revenues by reducing investment returns.

The other available scenarios have no connection with the particular circumstance. So option C seems to be the correct answer to that.