The _____ of an investment is the net value today of future cash inflows minus the investment.
A) net opportunity cost
B) return on investment
C) customer lifetime value
D) net present value
E) adjusted opportunity cost

Question

Quizplus · Accepted Answer

The definition provided is describing the net present value (NPV) of an investment. It involves calculating the present value of expected cash inflows and subtracting the initial investment. The other options listed (net opportunity cost, return on investment, customer lifetime value, and adjusted opportunity cost) do not fit the definition given.

The _____ of an Investment Is the Net Value Today