When using capital budgeting techniques, the cash flows are equally crucial as the capital budgeting techniques. For instance, if the cash flows are incorrect, the capital budgeting technique computations will be incorrect inadvertently. Secondly, generally, we have two categories of capital budgeting technique computations $($Brealey$,$ Myers, & Marcus, $2023$; Deo, $2022).$ One type of capital budgeting technique uses the time value of money, and the other type does not $($Brealey et al$.,2023$; Deo, $2022).$ For instance, the payback period does not use the time value of money, but the$$net present value, internal rate of return, and profitability index use the time value of money $($Brealey et al$.,2023).$

Class, refer to Sections $5\mathrm{.}1-5\mathrm{.}3.$ In Sections $5-1-5\mathrm{.}3,$ Brealey et al$.(2023)$ shared computation examples for present and future value. We review the present and future value before the net present value, internal rate of return, and profitability index. It is like learning addition and subtraction before multiplication and division. What is your favorite example of computing present or future value? Why?