What Is the Sum of Discounted Cash Flows Called?

1 FINANCE MCQS

The sum of discounted cash flows is called ____________?

Technical equity
Defined future value
Project Net Present Value (NPV)
Equity Net Present Value

Correct Answer: C. Project Net Present Value (NPV)

Detailed Explanation

The sum of discounted cash flows represents the total present value of all future cash inflows and outflows for a project. This value is called Net Present Value (NPV) and is widely used in capital budgeting to assess project profitability.

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The sum of discounted cash flows is called ____________?

The sum of discounted cash flows is called ____________?

Detailed Explanation

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In cash flow analysis, two projects are compared using a common life approach, which is classified as…

In capital budgeting, the Internal Rate of Return (IRR) of a project is classified as its ____________?…

In evaluating independent projects, the results of Internal Rate of Return (IRR) and Net Present Value…