alleryStart learning →NPV compares the cost of an investment today with what?
AIts book value after depreciation
BIts resale price in the market
CPresent value of its future cash flows
DThe sum of undiscounted profits
Answer & Solution
Correct answer: C. Present value of its future cash flows
NPV adds up the discounted future cash flows and sets them against the outlay made now.
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Related questions
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