The present value concept considers both recovery of the original investment and return on the original investment.

Question

Quizplus · Accepted Answer

The present value concept takes into account both the recovery of the original investment and the return on the investment. It calculates the current value of future cash flows based on a discount rate, which considers the time value of money and the risk associated with the investment. This helps investors to make informed decisions about whether to invest in a particular project or not.

The Present Value Concept Considers Both Recovery of the Original