Question: Discounting cash flows involves a. discounting only those cash flows that occur at least 10 years in the future. b. estimating only the cash flows

Discounting cash flows involves

a. discounting only those cash flows that occur at least 10 years in the future.

b. estimating only the cash flows that occur in the first 4 years of a project.

c. multiplying expected future cash flows by the cost of capital.

d. discounting all expected future cash flows to reflect the time value of money.

e. taking the cash discount offered on trade merchandise.

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