The difference between the market value of an investment and its cost is the:
A) Net present value.
B) Internal rate of return.
C) Payback period.
D) Proﬁtability index.
E) Discounted payback period.

Question

Quizplus · Accepted Answer

The difference between the market value of an investment and its cost is known as the Net Present Value (NPV). NPV measures the profitability of an investment by comparing the present value of cash inflows to the initial investment cost.

The Difference Between the Market Value of an Investment and Its