The Net Present Value (NPV)of a Stream of Cash Flows

question 53

Multiple Choice

The net present value (NPV) of a stream of cash flows is equal to

• A) the sum of all cash flows for all periods being considered.
• B) the sum of all cash flows for all periods being considered divided by the number of periods.
• C) the average of all cash flows for all periods being considered.
• D) the average of all cash flows for all periods being considered multiplied by the number of periods.
• E) the sum of all cash flows for all periods being considered discounted by the rate of return for each period.

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