The Net Present Value decision technique uses a statistic denominated in
A) years.
B) currency.
C) a percentage.
D) time lines.

Question

Quizplus · Accepted Answer

The Net Present Value (NPV) technique uses a currency-denominated statistic that represents the difference between the present value of cash inflows and the present value of cash outflows over a period of time. NPV takes into account the time value of money by discounting the cash flows using a required rate of return or cost of capital. Therefore, the correct answer is B, as it is the only option that refers to a currency denomination.

The Net Present Value Decision Technique Uses a Statistic Denominated