Net present value and cash flow mean the same thing.

Name: Net present value and cash flow mean the same thing.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Net present value (NPV) and cash flow are not the same thing. NPV is the present value of expected future cash flows minus the initial cost of investment while cash flow is the amount of cash that flows in and out of a business over a particular period. NPV is a measure of the profitability of an investment while cash flow is a measure of the liquidity of a business.

Net Present Value and Cash Flow Mean the Same Thing