The Excess Present Value Index Is

question 76

Multiple Choice

The excess present value index is

• A) the amount that present value exceeds future value in a decision model divided by the payback period.
• B) the total present value of future net cash inflows divided by the total present value of the initial investment.
• C) the total value of future cash flows divided by the number of years of the investment.
• D) the investment divided by the payback period.
• E) also called the certainty equivalent approach.

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