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Basic Question 4 of 29
The net present value of a project is ______.
B. the present value of future cash flows minus initial costs
C. the present value of future cash flows netting out those cash flows that occur after the relevant period
D. the present value of future cash flows netting out those cash flows that occur with risk
E. the present value of positive future cash flows
A. all current revenue minus all current costs
B. the present value of future cash flows minus initial costs
C. the present value of future cash flows netting out those cash flows that occur after the relevant period
D. the present value of future cash flows netting out those cash flows that occur with risk
E. the present value of positive future cash flows
User Contributed Comments 1
| User | Comment |
|---|---|
| mattg | Initial costs occur @ time period 0 so nominal value = present value |
Your review questions and global ranking system were so helpful.
Lina
Learning Outcome Statements
describe the capital allocation process, calculate net present value (NPV), internal rate of return (IRR), and return on invested capital (ROIC), and contrast their use in capital allocation
CFA® 2025 Level I Curriculum, Volume 2, Module 5.