________ is a method of calculating the net monetary gain or loss from and investment (project) by discounting all future costs and benefits to the present time.
A) Internal rate of return
B) Payback period
C) Net present value
D) Return on investment

Question

Quizplus · Accepted Answer

Net present value (NPV) is the method used for calculating the net monetary gain or loss from an investment by discounting all future costs and benefits to the present time. NPV takes into account the time value of money, meaning that future cash flows are worth less than present cash flows. It is considered to be the most accurate and reliable method for evaluating investment opportunities.

________ Is a Method of Calculating the Net Monetary Gain