Examlex
Which of these statements is true?
NPV
Net Present Value, a calculation that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time.
Discount Rate
The interest rate that a central bank charges financial institutions for short-term loans, or used in discounted cash flow (DCF) analysis to present value future cash flows.
APR
The Annual Percentage Rate, which is the interest rate for a whole year on a loan, including fees.
Present Value Payback Period
A capital budgeting technique that calculates the period of time required for the present value of future cash flows to cover the initial investment cost.
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