A project's ____ is the sum of the present values of all cash inflows and outflows discounted at the cost of capital.

Question

Quizplus · Accepted Answer

The given definition describes the calculation of Net Present Value (NPV) which is the best choice among the options provided. IRR (Internal Rate of Return) and Payback Period are also important project evaluation techniques, but they do not involve discounting cash flows to present values to the same extent as NPV.

A Project's ____ Is the Sum of the Present Values