What is the net present value of the cash flows that an asset will generate over its life called?

Question

Quizplus · Accepted Answer

The net present value of the cash flows that an asset will generate over its life is called value-in-use. This is the present value of the expected future cash flows discounted at the asset's required rate of return. Net realizable value is the estimated selling price of an asset less any selling expenses. Replacement cost is the cost of replacing an asset at its current value. Market value is the price at which an asset or liability could be bought or sold in a current transaction between willing parties. Thus, the best choice is D.

What Is the Net Present Value of the Cash Flows