CFA Practice Question

There are 233 practice questions for this study session.

CFA Practice Question

The net present value of a project is ______.

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
Correct Answer: B

User Contributed Comments 1

User Comment
mattg Initial costs occur @ time period 0 so nominal value = present value
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