A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called?
A) Net present value
B) Accounting return
C) Payback value
D) Profitability index
E) Discounted payback

Question

A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called? 
A) Net present value 
B) Accounting return 
C) Payback value 
D) Profitability index 
E) Discounted payback

Quizplus · Accepted Answer

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. In this context, it refers to the difference between the market value and the initial cost.

A Project Has an Initial Cost of $31,800 and a Market