What is the difference between the following two procedures? a. Discount benefits and discount costs first and

Question:

What is the difference between the following two procedures?

a. Discount benefits and discount costs first and then net these values together to get a net present value.

b. Net benefits and costs together first and then discount the combined figure to get a net present value.

Net Present Value
What is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...