A company's net present value:
A) is the current value of the company's expected future cash flows.
B) is a measure of the company's book value.
C) tells you the "correct" price of company shares.
D) adds up the value of all the assets the company currently owns.

Question

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. It is a method used to determine the value of an investment or project. A company's NPV is the current value of its expected future cash flows.

A Company's Net Present Value