Net Present Value Can Be Defined As

question 132

Multiple Choice

Net present value can be defined as:

• A) The rate of return that causes the present value of all cash flows associated with a project to equal zero.
• B) The discount rate that causes the current value of cash inflows to exceed the current value of cash outflows.
• C) A measure of the value created or added today by undertaking a project.
• D) The cash outflows from a project subtracted from the cash inflows for the project.
• E) The net costs of a project subtracted from the net income generated from the project.

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