A financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of return is known as the _________ model.
A) Internal rate of return (IRR)
B) Net present value (NPV)
C) Return on investment (ROI)
D) Return on assets (ROA)
E) Inflow / outflow

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) model measures the current value of all cash inflows and outflows using management's minimum desired rate of return, assessing the profitability of an investment or project.

A Financial Model That Measures the Current Value of All