Higher cash flows earlier in a project's life are Blank______ valuable than higher cash flows later on.

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02-06-2022
Business

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Higher cash flows earlier in a project's life are Blank______ valuable than higher cash flows later on.

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Parrainidn Parrainidn · Answer 1 · 2022-06-06T12:32:19-04:00

When we get higher cashflows in a projects life at an earlier period, these are more valuable than later on.

Why are earlier cashflows more valuable?

When we receive higher cashflows earlier on in a project's life, the discounted values of these cashflows will be higher.

This is as opposed to receiving them later on where the discounted values will be lower on account of there being a longer period to discount over.

Find out more on discounted values of cashflows at https://brainly.com/question/18957458.

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Why are earlier cashflows more valuable?

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