Robert is doing an economic analysis using today's dollar values.He is doing:
A)Cash flow analysis
B)Return on investment analysis
C)Break-even point analysis
D)Net present value analysis
E)Internal rate of return analysis

Question

Quizplus · Accepted Answer

Net present value analysis involves calculating the present value of future cash flows using today's dollar values. This is exactly what Robert is doing in his economic analysis, making net present value analysis the best choice. While the other analyses also involve monetary evaluations, they do not necessarily involve the use of today's dollar values in the same way that net present value analysis does.

Robert Is Doing an Economic Analysis Using Today's Dollar Values