In order to calculate the net present value of a proposed investment, it is necessary to know:
A)the cash flows expected from the investment.
B)the net income expected from the investment.
C)the interest rate paid on funds borrowed to make the investment.
D)the cash dividends paid on the stock each year.

Question

Quizplus · Accepted Answer

To calculate the net present value (NPV) of an investment, you need to know the expected cash flows from the investment and the discount rate. The cash flows are essential as they represent the returns from the investment over time.

In Order to Calculate the Net Present Value of a Proposed