What does the term "Net Present Value (NPV)" represent in finance? a) The total revenue generated by an investment b) The difference between the present value of cash inflows and the present value of cash outflows c) The total cost of an investment project d) The total profit earned from an investment
What does the term "Net Present Value (NPV)" represent in finance? a) The total revenue generated by an investment b) The difference between the present value of cash inflows and the present value of cash outflows c) The total cost of an investment project d) The total profit earned from an investment
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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
Transcribed Image Text:What does the term "Net Present Value (NPV)" represent in finance?
a) The total revenue generated by an investment
b) The difference between the present value of cash inflows and the present value of cash outflows
c) The total cost of an investment project
d) The total profit earned from an investment
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