(Q. 22 IN B) CASH FLOWS OCCURRING IN DIFFERENT PERIODS SHOULD NOT...

26. (Q. 22 in B) Cash flows occurring in different periods should not be compared

unless:

A) interest rates are expected to be stable.

B) the cash flows occur no more than one year from each other.

C) higher rates of interest can be earned on the cash flows.

D) the cash flows have been discounted to a common date.

Answer D