Investment project E has equal annual cash flows over its lifetime. The present value of the cash inflows from project E:

A) can be measured using the present value of an annuity.
B) must be measured year-by-year using a present value table.
C) can be measured using the future value of an annuity.
D) must be measured year-by-year using a future value table.

Present Value

The current value of a future amount of money or stream of cash flows, discounted back to the present using a specific discount rate.

Equal Annual Cash Flows

A series of identical cash amounts that occur at equal intervals over a period of time, commonly used in financial analysis.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.