When we get higher cashflows in a projects life at an earlier period, these are more valuable than later on.
Why are earlier cashflows more valuable?
When we receive higher cashflows earlier on in a project's life, the discounted values of these cashflows will be higher.
This is as opposed to receiving them later on where the discounted values will be lower on account of there being a longer period to discount over.
Find out more on discounted values of cashflows at https://brainly.com/question/18957458.
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