The net present value method focuses on ________.
A) cash flows and required rate of return
B) inventory cost and cost of capital
C) working capital and cost of capital
D) operating income and required rate of return

Question

Quizplus · Accepted Answer

The net present value method involves calculating the present value of expected cash flows and subtracting the initial investment. Therefore, it focuses on cash flows and the required rate of return. The remaining choices are not relevant for this method.

The Net Present Value Method Focuses on ________