The net present value method is:
A) Used to appraise a capital project's qualitative factors
B) Used to show how long the initial investment will be at risk
C) The sum of the cash inflows, discounted to time zero
D) The sum of the projected cash inflows and outflows valued in today's dollars

Question

Quizplus · Accepted Answer

The net present value (NPV) method calculates the present value of a project's cash inflows and outflows, discounted back to today's dollars, to determine the project's profitability or worth.

The Net Present Value Method Is