QUESTION 2 OF 25
What is net present value?
Net present value is a common investment term. It is defined as the value of all future cash flows over the life of an investment, stated in today's dollars. Be sure to describe what NPV is and how it is used in practice.
"Net present value is the value of all future cash flows over the life of an investment, converted into today's dollars. Net present value is a metric that is used to calculate the economic value of an investment. It is also a way to convert various investment options into current-day dollars to make comparisons. In order to calculate, an interest rate must be determined."
