The net initial investment is the net cash outflow
A)in year 0.
B)for all years combined.
C)as computed at the initial discount rate.
D)to be paid out over the discount period.

Question

Quizplus · Accepted Answer

The net initial investment represents the cash outflow in year 0, which includes the initial capital investment and any associated costs. It does not include cash flows in future years or take into account the discount rate.

The Net Initial Investment Is the Net Cash Outflow