A project's net present value is equal to:

Question

Quizplus · Accepted Answer

The net present value (NPV) of a project is calculated by subtracting the present value of all the cash outflows related to the project from the present value of the expected future cash flows generated by the project. This gives a measure of the project's profitability after taking into account the time value of money and the cost of capital. Thus, option A is the correct choice. Option B would result in a negative NPV, while options C, D, and E do not take into account all the relevant cash flows of the project.

A Project's Net Present Value Is Equal To