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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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