Net Present Value Is

question 3

Multiple Choice

Net Present Value is:

• A) the PV of a future income stream
• B) the PV of a future income stream minus the current cost of the project
• C) the PV of a future income stream plus the current cost of the project
• D) the PV of a future income stream in yesterday's dollars

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Definitions:

Proof 1

A logical or mathematical demonstration showing that a specific statement or theorem is true, based on accepted axioms and inference rules.

Proof 2

An alternative term generally meaning evidence or argument establishing a fact or the truth of a statement.

Demonstrations

organized activities by a group of people to show their protest, or support for, or against a cause.

Validity

The property of an argument in which the truth of the premises logically guarantees the truth of the conclusion.