The NPV function is used in calculating the net present value of a transaction,which is the _______ value of all the cash inflows and outflows in the investment adjusted by the time value of money.
A)current
B)projected
C)future
D)total

Question

Quizplus · Accepted Answer

The net present value (NPV) calculates the current value of all the cash inflows and outflows in the investment. It takes into consideration the time value of money by discounting future cash flows to their present value, so that they can be compared to the initial investment. Therefore, the correct choice is A) current.

The NPV Function Is Used in Calculating the Net Present