Question: What is the relationship between Net Present Value ( NPV ) and time value of money? Net Present Value ( NPV ) must be calculated
What is the relationship between Net Present Value NPV and time value of money?
Net Present Value NPV must be calculated before calculating the time value of money.
There is no relationship between Net Present Value NPV and time value of money.
The calculation of net present value takes the time value of money into consideration.
Both Net Present Value NPV and time value of money are used as a tool in shortterm projects.
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
