Chapter 6-53 Concepts Statement No. 7 introduces an expected cash flow approach that uses a range of cash flows and incorporates the probabilities of
{"Image DocumentName": "Present Value Measurement", "Image ImageDescription": "Concepts Statement No. 7 introduces an expected cash flow approach that uses a range of cash flows and incorporates the probabilities of those cash flows. Choosing an Appropriate Interest Rate. Three Components of Interest: Pure Rate. Expected Inflation Rate. Credit Risk Rate. Risk-free rate of return. FASB states a company should discount expected cash flows by the risk-free rate of return. LO 9 Apply expected cash flows to present value measurement.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}