The net present value (NPV) of a stream of cash flows is equal to
A) the sum of all cash flows for all periods being considered.
B) the sum of all cash flows for all periods being considered divided by the number of periods.
C) the average of all cash flows for all periods being considered.
D) the average of all cash flows for all periods being considered multiplied by the number of periods.
E) the sum of all cash flows for all periods being considered discounted by the rate of return for each period.
Correct Answer:
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