Net Present Value

Net present value

A) Divides investment by average cash inflow to determine if a capital expenditure should be made
B) Discounts and totals cash inflows and subtracts the investment to determine if a capital expenditure should be
C) Discounts and totals cash inflows and divides by the investment to determine if a capital expenditure should be made
D) Calculates the discount rate that equates the present value of the cash inflows with the initial investment to determine if a capital expenditure should be made