Using the NPV function, you can write a formula to determine the net present value of the income flows for a project, including the initial investment, as follows: ____.

Question

Quizplus · Accepted Answer

The correct formula to determine the net present value (NPV) of income flows for a project, including the initial investment, is to subtract the initial investment from the NPV of the income flows. This is because the initial investment is a cash outflow and should be subtracted from the present value of cash inflows to get the net present value.

Using the NPV Function, You Can Write a Formula to Determine