Question

Cash Flows occurring at different point of time are not comparable".

Answer 1

Answer:

because To move a cash flow forward in time, you must compound it. To move a cash flow back in time, you must discount it.

Explanation:

Answer 2

No, cash flows cannot be comparable

Explanation:

• Cash flows is the accounting term which is defined as the net amount of cash which the entity receives as well as disburses during a time period. And the time period which the cash flow is kept tracked is like year, month or quarter.
• The sources of cash flows are operations, financing and investing activities of the business.
• So, the cash flows which occur at different point of time are not comparable as the dollar today and dollar in a year are not equivalent. And in order to move the cash flow forward in time, one need to compound it using Time value of money. And move the cash flow back in time, one need to use the Discount.