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The Net Present Value of an Investment Is Best Defined

Question 16

Multiple Choice

The net present value of an investment is best defined as the


A) current cost if the investment is made today.
B) net value received at the end of the investment period.
C) present value of the investment's future cash flows minus the investment's cost.
D) net decrease in value caused by waiting to receive the cash benefit from the investment.
E) value received at the end of the investment period minus the investment's cost.

Correct Answer:

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