A Company's Net Present Value

question 100

Multiple Choice

A company's net present value:

• A) is the current value of the company's expected future cash flows.
• B) is a measure of the company's book value.
• C) tells you the "correct" price of company shares.
• D) adds up the value of all the assets the company currently owns.

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Definitions:

Supplies

Materials and goods held for use in the production process or office operations, often considered short-term assets in financial accounting.

GST and PST

Taxes applied to the sale of goods and services; GST is a federal tax in Canada, while PST is a provincial sales tax.

Sold

The act of exchanging a product or service for money or other consideration.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, assigning weights to each number.