Net Present Value Is Defined as the ________

question 20

Multiple Choice

Net present value is defined as the ________.

• A) combined value of the capital assets of a project and the sales projections
• B) difference between the present value of a firm's assets and the future project liabilities
• C) difference between the present value of a project's incremental cash flow and the initial investment
• D) combined value of a project's initial investment and its incremental cash flow

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Definitions:

Liquidated Debt

A debt for which the exact monetary value has been determined and acknowledged by both the debtor and creditor.

Unliquidated Debt

A debt that has not been determined or fixed in amount, often because it is subject to a legal dispute or requires a judgment to ascertain its value.

Accord And Satisfaction

A legal settlement where a debtor offers something different than originally agreed upon, and if accepted, the debt is considered settled.

Sufficient Consideration

The concept in contract law that something of value, which is mutually agreed upon by the parties involved, must be exchanged for a contract to be legally binding.