Which of the following formulas regarding net present value (NPV)is correct?
A)NPV + PV(benefits)= PV(Cost)
B)NPV - PV(costs)= PV(benefits)
C)NPV = PV(all project cash flows)
D)NPV = PV(benefits)+ PV(costs)
E)NPV -PV(benefits)- PV(costs)= 0

Question

Quizplus · Accepted Answer

NPV is calculated by taking the present value (PV) of all the project's cash flows, including both inflows (benefits) and outflows (costs).

Which of the Following Formulas Regarding Net Present Value (NPV)is