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Good Luck with Your Test! The Module Team Question 14 One of the Steps in the Net Present Value Method of Investment Appraisal Is to

Question

Good luck with your test! The module team Question 14 One of the steps in the net present value method of investment appraisal is to find the present value of all relevant expected future cashflows during the project's life. True False 3 pts

Answer

4.5 (256 Votes)
Verificación de expertos
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Answer

True

Explanation

## The Net Present Value (NPV) method includes the following steps:## Step 1: Estimate the expected future cash flows.## Step 2: Decide the appropriate discount rate to use based on the firm’s cost of capital.## Step 3: Calculate the present value of all expected future cash flows. ## Hence, this statement is correct that one of the steps in the NPV method is the calculation of the present value of all relevant OBU.