Question

Your project has expected cash inflows of $7.8 million in today's dollars. Which cash flow technique was used to determine this?

A: Discounted cash flow
B: IRR
C: NPV
D: Cost-benefit analysis

Answer 1

The cash flow technique used to determine the expected cash inflows of $7.8 million in today's dollars is Discounted Cash Flow (DCF).

Step-by-step explanation:

The cash flow technique used to determine the expected cash inflows of $7.8 million in today's dollars is Discounted Cash Flow (DCF).

DCF is a financial analysis technique that calculates the present value of future cash flows by discounting them back to the present using a discount rate.

To determine the present value of the cash inflows, you would need to apply the formula for calculating the present discounted value for each time period when the benefit is going to be received.