Why are the capital costs of long-term projects discounted to present value?- Because money that is received in the future has a greater value than money received now. - To better account for the resource yield that will be forgone by a long-term investment. - Because the amount of money that is spent in interest payments for the project should not be incorporated into the capital budget. - To better account for the relative stability of tax-free government investments as compared to private sector projects.

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