Net Present Value (NPV)is defined as the difference between ________.
A) present value and future value
B) purchasing price and selling price
C) present value of benefits and present value of costs
D) present value of benefit and future value of costs

Question

Quizplus · Accepted Answer

Net present value calculates the present value of cash inflows and outflows from a project or investment and subtracts the total present value of costs from the total present value of benefits to determine the net present value. So, the correct choice is C - the difference between present value of benefits and present value of costs.

Net Present Value (NPV)is Defined as the Difference Between ________