With in non- discount cash flow method
With in discount cash flow method
Equal With in non- discount cash flow method
No discount cash flow
Answer is Right!
Answer is Wrong!
The correct answer is: B. Within discount cash flow method.
Net present value (NPV) is a capital budgeting method that calculates the present value of a project’s future cash flows, and compares it to the project’s initial investment. A positive NPV indicates that the project is expected to generate a profit, while a negative NPV indicates that the project is expected to lose money.
NPV is a discounted cash flow (DCF) method, which means that it takes into account the time value of money. The time value of money is the idea that money today is worth more than money in the future, because you can earn interest on money today. DCF methods discount future cash flows to their present value, which makes
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