CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

Which of the following best describes the difference between an investment's market value and its cost?

A. Net present value
B. Internal rate of return
C. Payback
Correct Answer: A

User Contributed Comments 4

User Comment
todolist IRR discounted future cashflows to present values
DannyZhou So MV is PV of future cash flow without taking into consideration of initial cash outflow?
robbiecow MV = PV(future CF) - Initial Outlay
stevo If [MV = PV(FCF) - Initial outlay] and the question is [MV - Cost] then essentially the question is asking [PV(FCF) - initial outlay - cost] ?
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