Q458
Graph which is plotted for projected net present value and capital rates is called
A.
net loss profile
B.
net gain profile
C.
net future value profile
D.
net present value profile
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Graph which is plotted for projected net present value and capital rates is called net present value profile. The net present value mainly measures the net increase in the company's equity by working on a project. It is essentially the difference between the present value of cash flows and the initial investment based on the discount rate.