The net present value method focuses on:
A)cash inflows
B)accrual-accounting net income
C)cash outflows
D)Both A and C are correct.

Question

Quizplus · Accepted Answer

The net present value method considers both cash inflows and cash outflows, as it aims to calculate the present value of cash inflows minus the present value of cash outflows. Accrual-accounting net income is not directly relevant to this calculation as it includes non-cash items such as depreciation.

The Net Present Value Method Focuses On