Question

Present value calculations:

A) can hinder the creation of value
B) can provide managers with a means of identifying the best investment choices
C) cause managers to mix asset and financing considerations
D) A& B
E) B & C

Answer 1

Present value calculations can provide managers with a means of identifying the best investment choices and can cause managers to mix asset and financing considerations.

Step-by-step explanation:

The answer to the question is E) B & C. Present value calculations can provide managers with a means of identifying the best investment choices and can cause managers to mix asset and financing considerations. By calculating the present value of future cash flows, managers can determine the profitability and worthiness of different investment options and make informed decisions.