The net present value (NPV) technique estimates the current value of the cash that will flow into the firm in the future and deducts the initial outlay.

Name: The net present value (NPV) technique estimates the current value of the cash that will flow into the firm in the future and deducts the initial outlay.
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

This is a correct definition of the net present value technique. NPV is calculated by discounting future cash flows back to their present value and subtracting the initial investment.

The Net Present Value (NPV) Technique Estimates the Current Value