The net present value method considers
1) the timing of the cash inflows from an investment
2) the cost of an investment
3) the firm's cost of capital

Question

​The net present value method considers ​
1) the timing of the cash inflows from an investment
2) the cost of an investment
3) the firm's cost of capital

Quizplus · Accepted Answer

The net present value (NPV) method considers the timing of cash inflows from an investment (to discount them back to their present value), the initial cost of the investment, and the firm's cost of capital (to serve as the discount rate).

​The Net Present Value Method Considers ​

The Net Present Value Method Considers