The effect of purchasing power or inflation on present value is important because _________??

Finance Mcqs
BILAL KHATTAK0

A. It increases the real value of cash flows received in the future 
B. It reduces the real value of cash flows received in the future 
C. It has no effect on real value of cash flow received in the future
D. None of these

Related Mcqs:

  1. The ratio of the total present value to the initial investment of a given project
  2. Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling??
  3. The most important item that can be extracted from financial statements is the actual ________ of the firm.?
  4. Which of these transactions will not be recorded in cash book??
  5. A wall 50 mm thick (thermal conductivity k = 40 W/m?C) has temperature difference on two surfaces of 100?C. What could probably change if the temperature difference of this wall drops to 100?C
  6. Defrosting of evaporators is done because
  7. In a thermocouple, the potential between the two junctions is due to the temperature gradient along the conductors in the circuit. This effect is named as
  8. Office equipments account is classified as _________ account??
  9. The substitution effect works to encourage a consumer to purchase more of as product when the price of tha good is falling because
  10. In all irreversible processes, the entropy of the system

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