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If the "Net Cashflow" of an Investment Is Defined as "Total

Question 13

Multiple Choice

If the "net cashflow" of an investment is defined as "total positive cashflows LESS total negative cashflows", what is then the relationship between net cashflow and NPV?


A) NPV is essentially a discounted version of net cashflow
B) The two terms are similar except that NPV is based on profit, not cashflows
C) Net cash flow is NPV divided by IRR
D) Net cash flow is the initial investment times 1.x, where x is the IRR

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