Question: Net present value (NPV) is an important concept used to analyse capital investment projects. NPV can best be described as: A. the amount that should
Net present value (NPV) is an important concept used to analyse capital investment projects. NPV can best be described as:
| A. | the amount that should be used to discount the future cash flows to the present, and then compared with the current investment. | |
| B. | the amount that must be invested now to earn a particular future value. | |
| C. | the difference between the discounted future cash inflows and the cost of the investment. | |
| D. | the difference between the future cash inflows and the discounted cost of the investment. |
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