Answer: False
Explanation:
Present value is not the value of cash flows that occur at different points in time but rather the value of cash flows at the current point in time. The values can therefore be added up to determine the value of a capital budgeting project because they relate to the same time period.
This is the basic premise that the Net Present Value capital budgeting method works on. It discounts the various cash inflows to the present period, adds them up and then subtracts the cost of the project. If it is positive then the project is off good value.
