The Net Present Value Formula for One Period Is

question 37

Multiple Choice

The net present value formula for one period is:
I. NPV = C0 + [C1/(1 + r) ]; II) NPV = PV required investment; and
III. NPV = C0/C1

• A) I only
• B) I and II only
• C) III only
• D) None of the above

---

Definitions:

Output

The total quantity of goods or services produced by an individual, firm, or country over a specified period.

Government Deregulation

The process of reducing or eliminating government rules controlling how businesses can operate, often to encourage more competition and innovation.

Economies of Scale

Enterprises gain cost benefits from their scale of operation, which typically results in the cost per unit of output decreasing as the scale increases.

Economic Profit

The total revenue of a business minus its explicit and implicit costs.