Using 'net present value' in calculating economic feasibility will allow for variations in the time value of money.

Question

Quizplus · Accepted Answer

Net present value takes into account the time value of money, by discounting future cash flows to their present value. This allows for variations in the value of money over time, and helps to account for inflation and other economic factors that can impact the feasibility of a project.

Using 'Net Present Value' in Calculating Economic Feasibility Will Allow