Discounting cash flows involves: reducing cash flows that occur beyond 10 years in the future b.

Discounting cash flows involves:

a. reducing cash flows that occur beyond 10 years in the future

b. discounting expected cash flows beyond a certain number of years in the future, which varies with the riskiness of the project.

c. reducing expected cash flows to achieve certainty equivalence.

d.reducing the value of future cash flows to reflect their present value.

e.taking the cash discount offered on trade merchandise.