Question

MCQ: If desired rate of return is minimum by actual rate of return then it is classified as
A future cash flows
B. present cash flow
C. positive cash flows
D. negative cash flows
Answer​

Answer 1

Step-by-step explanation:

D. negative cash flows

Answer 2

If the desired rate of return is minimum by the actual rate of return then it is classified as A. future cash flows.

Explanation for the answer:

• Discounted cash flow is a method of evaluation that is used to determine whether the investment depends on its future cash flows.
• It is used in knowing the company’s current value and project and how much money a firm will earn in the future.
• It understands the existing value of expected future cash flows by using a discount rate.
• Hence, the correct answer among all the options is option A. future cash flows.

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