CASH FLOWS OCCURRING IN DIFFERENT PERIODS SHOULD NOT BE COMPARED U...

26. - EXAM SOLUTION 8 FUNDAMENTALS OF CORPORATE FINANCE, 4TH EDITION BREALEY
EXAM SOLUTION 8 FUNDAMENTALS OF CORPORATE FINANCE, 4TH EDITION BREALEY

26. 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.