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AFE · Question #167

To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consistent with those inherent in the cash flows?

The correct answer is C. Discount rates. See the full explanation below for the reasoning.

Question

To avoid double counting or omitting the effects of risks factors what should reflect assumptions that are consistent with those inherent in the cash flows?

Options

  • AEconomic flow
  • BNominal flows
  • CDiscount rates
  • DInflation effect

How the community answered

(37 responses)
  • A
    3% (1)
  • B
    5% (2)
  • C
    78% (29)
  • D
    14% (5)

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