The Present Value of an Investment's Net Cash Inflows Minus

question 8

Multiple Choice

The present value of an investment's net cash inflows minus the present value of its cost outlays is called the:

• A) present value.
• B) future value.
• C) net present value.
• D) discounted value.
• E) present annuity value.

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Definitions:

Capital Goods

Long-lasting goods used in the production of other goods or services, such as machinery, buildings, and equipment.

Consumer Goods

Products that are purchased for consumption by the average consumer.

Capital Goods

Long-lasting goods that are used in the production of other goods or services, such as buildings, machinery, and equipment.

Consumer Goods

Products that are sold directly to consumers for their personal or household use, typically including items like electronics, appliances, and clothing.