The _____ method of evaluating a project is the sum of the present value of the net cash flow for each time period.
A) net present value
B) internal rate of return
C) earnings growth
D) gross cash flow

Question

Quizplus · Accepted Answer

The method described is the net present value (NPV) method, which involves calculating the present value of all cash inflows and outflows associated with a project and subtracting the initial investment. The result gives the NPV, which is used to evaluate the profitability of the project.

The _____ Method of Evaluating a Project Is the Sum