Net present valueA) is gross domestic product less depreciation.B) is sales volume less sales and excise taxes.C) is profit after taxes.D) ignores the time value of money.E) is the discounted value of a series of future cash receipts.

Question

Net present valueA)  is gross domestic product less depreciation.B)  is sales volume less sales and excise taxes.C)  is profit after taxes.D)  ignores the time value of money.E)  is the discounted value of a series of future cash receipts.

Jessica zambrano · Accepted Answer

Final Answer : E, Explanation :  Net present value (NPV) is the discounted value of a series of future cash receipts. It takes into account the time value of money, which means it measures the current value of future cash flows by discounting them back to their present value using a discount rate. A positive NPV indicates that an investment is profitable, while a negative NPV indicates that an investment is unprofitable. Options A, B, and C are incorrect definitions of other financial terms. Option D is incorrect because NPV does consider the time value of money.

Net present value

A) is gross domestic product less depreciation.
B) is sales volume less sales and excise taxes.
C) is profit after taxes.
D) ignores the time value of money.
E) is the discounted value of a series of future cash receipts.

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