In MS-Excel 2007, NPV(rate, value1, [value 2], …) is a financial function that returns
[amp_mcq option1=”the net present value of an investment based on discount rate and series of future payments and income” option2=”the number of periods for an investment based on periodic, constant payments and constant interest rate” option3=”the future value of an investment based on periodic, constant payments and constant interest rate” option4=”the future value of an initial principal after applying a series of compound interest rates” correct=”option1″]
This question was previously asked in
UPSC CISF-AC-EXE – 2019
In MS-Excel, the NPV (Net Present Value) function calculates the present value of a series of cash flows based on a specified discount rate. It is used to evaluate the profitability of an investment or project by bringing all future cash flows (both positive and negative) back to their present-day value. Option A accurately describes this function: “the net present value of an investment based on discount rate and series of future payments and income”.