sakshi280101 sakshi280101
  • 16-03-2020
  • Mathematics
contestada

To compare the economic values of several alternative payments, can any point in time be chosen as the focal date?

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sqdancefan
sqdancefan sqdancefan
  • 26-03-2020

Answer:

  yes

Step-by-step explanation:

The ratio between the present value and the future value will be the same for any present or future date, provided that the discount/interest rate is the same in each case.

Alternative cash flows projected to the same date will have the same ratio, regardless of the chosen date — again, provided that the discount/interest rate is the same in each case.

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