Discussion
Net present value is computed as the present value of the benefits less the
Answer: D
Correct answer: present value of the costs, the initial investment included
\[ NPV = \sum \frac{\mathrm{benefits}}{(1+i)^t} - \sum \frac{\mathrm{costs}}{(1+i)^t}. \] The initial investment is a cost at year zero, so it enters undiscounted. A positive result means the project earns more than the discount rate applied to it.
No comment is present. Be the first to comment.
Loading…
Post your comment
Please log in or register to post a comment.
Examination Categories
- SSC Exams
- Banking Exams
- Teaching Exams
- Civil Services Exams
- Railways Exams
- Engineering Recruitment Exams
- Defence Exams
- State Government Exams
- Police Exams
- Insurance Exams
- Nursing Exams
- Other Government Exams
- NRA CET
- PG Entrance Exams
- Campus Placement
- MBA Entrance Exams
- CUET and UG Entrance
- Judiciary Exams
- Regulatory Body Exams
- Software Development