If the time value of money techniques are used correctly, the present value of cash flows far in the future will be:

greater than the future value of the same amount of cash flows in the present.

greater than the present value of the same amount of cash flows in the present.

lesser than the present value of the same amount of cash flows in the present.

same as the future value of the same amount of cash flows in the present.

Which of the following isnotone of the steps in the net present value method?

Calculate the number of years required to recover the initial investment.

Compare the discounted net cash flows to zero.

Discount the cash flows.

Identify the amount and timing of the cash flows.

Why does depreciation have an indirect effect on cash flows?

It reduces the annual operating cash flows.

It reduces the original cash outflow associated with the asset.

It reduces the amount of income taxes a company must pay.

It causes net income to be less than operating cash flows.