What Is Meant by the Term 'Net Present Value

question 42

Multiple Choice

What is meant by the term 'Net Present Value'?

• A) The future value of cash flows after netting out the initial cash flow.
• B) The gross sum of the final cash flow and the present value of future cash flows.
• C) The present value of future cash flows after netting out the initial cash flow.
• D) The gross sum of the initial cash flow and the future value of future cash flows.

---

Definitions:

Decrease

A reduction in size, quantity, or intensity of something.

College

An institution of higher education offering undergraduate programs, typically leading to associate or bachelor's degrees.

Mean-level Changes

Adjustments or shifts in the average value of a variable or trait over time or across groups.

Rank-order Consistency

The degree to which the relative ordering of individuals on a particular trait remains the same over time, even if the absolute level of the trait changes.