To find the___________ ,the net present value of the system is calculated by combining the net present value of the costs of the system with the net present value of the benefits of the system.
A)rate of return (ROR)
B)return on investment (ROI)
C)return on assets (ROA)
D)return on capital (ROC)

Question

Quizplus · Accepted Answer

The net present value (NPV) of a system is typically used to evaluate the financial feasibility of an investment project by combining the present values of its costs and benefits. The most appropriate measurement for this evaluation is the Return on Investment (ROI), which calculates the ratio of net profit to the amount invested. ROI is a widely used performance metric that provides a quick and easy way to evaluate the financial returns of an investment over a given period. While rate of return (ROR), return on assets (ROA), and return on capital (ROC) are also common financial metrics, they are not as relevant to calculating the NPV of a system because they do not capture the investment's net impact on profitability.

To Find The___________ ,The Net Present Value of the System