The net present value for a year is calculated by _______.
A)combining benefits and costs for a defined number of years
B)applying the discount rate to the combination of benefits and costs
C)determining when the benefits offset the costs
D)applying the discount factor to the combination of benefits and costs

Question

The net present value for a year is calculated by _______.​
A)combining benefits and costs for a defined number of years
B)​applying the discount rate to the combination of benefits and costs
C)determining when the benefits offset the costs
D)​applying the discount factor to the combination of benefits and costs

Quizplus · Accepted Answer

The net present value (NPV) is calculated by applying the discount factor to the combination of benefits and costs, which adjusts for the time value of money, making future cash flows present value terms.

The Net Present Value for a Year Is Calculated by _______.​

The Net Present Value for a Year Is Calculated by _______.