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

question 86

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 multiplied by the number of periods.
• D)the sum of all cash flows for all periods being considered discounted by the rate of return for each period.

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Definitions:

Abnormal Behavior

Actions, thoughts, or emotions that deviate significantly from normative or expected behavior within a society or cultural context.

Unified Personality

A psychological concept referring to an individual's consistent and cohesive sense of self and personality traits.

Self Theory

A psychological perspective focusing on the development of one's personal identity and sense of self.

Ego Theory

A psychological perspective that emphasizes the role of the ego in development and functioning, focusing on how people integrate their experiences and environment into their sense of self.