Question: NPV can be described as: The difference between the present values of future new project cash flows and the amount of that project's initial investment

NPV can be described as:

The difference between the present values of future new project cash flows and the amount of that project's initial investment

The difference between the sum of future new project cash flows and the amount of that project's initial investment

The rate of return actually earned by a new business project

The amount of time it takes for a firm to recoup its initial investment on a discounted basis

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

Build on the results of Prob. 1341, p. 729, to find factors of safety for bending and wear for gear C. Both gears are made from Grade 2 carburized and hardened steel. Use a face-width of 4 times the...

Q:

The process of determining the future value of an investment made today present value The process of determining the present value of money to be received in the future: discounting Equal periodic...

Q:

The process of determining the future value of an investment made today present value The process of determining the present value of money to be received in the future: discounting Equal periodic...

Q:

Is there anyway you can help me? I know it's kind of last minute, There are only 9 questions and most are multiple choice. Could you have done in 4 hours? 1. The difference between the present value...

Q:

1) The difference between the present value of an investment's future cash flows and its initial cost is the: a) internal rate of return. b) profitability index. c) discounted payback period. d)...

Q:

1 Titan Mining Corporation has 9 million shares of common stock outstanding and 340,000 6 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $38 per...

Q:

Can I please get help with this question. I'm stuck? 1.The difference between the present value of an investment's future cash flows and its initial cost is the: net present value. payback period....

Q:

multiple choice quetion 23. Which one of the following is an example of a sunk cost? A. $1,500 of lost sales bocause an item was out of stock B. S1,200 paid to repair a machine last year C. $20,000...

Q:

UC IT considers sixnew projects. Discount rate is 10%. You need to analyze these projects in Excel. 1.Calculate the NPV and IRR of the first new project based on the below information. initial...

Q:

1. The minimum desired rate of return on an investment is sometimes referred to as ________. A) the discount rate B) the hurdle rate C) the required rate of return D) all of the above 2. Using the...

Q:

1. UC IT considers FIVE new projects. Discount rate is 10%. You need to analyze these projects in Excel. -Calculate the NPV and IRR of the second new project based on the information: An initial...

Q:

Let x(1) be a signal with Fourier transform X(@) given by [1 0| 1 X(@) = %3D Consider the signal d x(t) y(1) = dt? Find the value of ly()* dt

Q:

A Transformer is connected to a 1000 V, 50 Hz Supply. The total core loss is 1000 W, of which 700 W are Hystersis and 300 W are eddy current loss. If the applied voltage is raised to 2000k and the...

Q:

Which one of the following Treasury Securities have the greatest interest rate risk? 5 - year T - Bill with a duration of 3 . 5 years 3 0 - year T - Bond with a duration of 1 8 years 3 0 - year T /...

Q:

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".