Net present value:
A) is gross domestic product less depreciation.
B) is sales volume less sales and excise taxes.
C) is profit after taxes.
D) ignores the time value of money.
E) is the discounted value of a series of future cash receipts.

Question

Quizplus · Accepted Answer

Net present value is the present value of cash inflows minus the present value of cash outflows over a period of time, taking into account the time value of money. It represents the value that an investment adds to the shareholder's wealth.

Net Present Value