Multiple choice

Directions: Choose the correct option for the given question: Discounted cash flow technique takes into account the time value of money.

  1. True

  2. False

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Discounted cash flow (DCF) techniques, such as Net Present Value (NPV) and IRR, use discount rates to adjust future cash flows to their present value, explicitly accounting for the time value of money.