NPV is a measure of:
A) The difference between the estimated costs of a project and the present value associated with future cash flows
B) The return on initial investment of the project
C) How long it will take to recuperate the cost of a project with future revenue or cost savings
D) The expected rate of return required in order for a company to pursue a project
E) None of the above

Question

NPV is a measure of: 
A) The difference between the estimated costs of a project and the present value associated with future cash flows
B) The return on initial investment of the project
C) How long it will take to recuperate the cost of a project with future revenue or cost savings
D) The expected rate of return required in order for a company to pursue a project
E) None of the above

Quizplus · Accepted Answer

NPV (Net Present Value) is a measure of the difference between the present value of a project's future cash flows and its initial cost. It helps in assessing the profitability of a project by considering the time value of money.

NPV Is a Measure Of