The Steps of the Net Present Value Method for Making

The steps of the net present value method for making long-term decisions include

A) estimate the amounts of future cash inflows and future cash outflows in each period for each alternative under consideration.
B) requiring the use of the applicable treasury rate as the discount rate in computing the present value of future cash flows.
C) if the present value of the future cash inflows exceeds the present value of the future cash outflows for a proposal,reject the alternative.
D) ignore depreciation because it is not a cash flow and does not affects the after-tax cash flow.

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