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Management · Q486

Financial Management

Graduate and Post Graduate · Management · question 486

Q486

Sum of discounted cash flows is best defined as

A.
technical equity
B.
defined future value
C.
project net present value
Answer
D.
equity net present value

Answer: Option C

Solution

Answer: Option C
Solution:
Sum of discounted cash flows is best defined as project net present value. NPV is used in capital budgeting and investment planning to analyze the profitability of a projected investment or project.