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    Net present value

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    The net present value of a project is calculated as follows:

    a. the future value of all cash inflows minus the present value of all outflows.

    b. the sum of all cash inflows minus the sum of all cash outflows.

    c. the present value of all cash inflows minus the present value of all cash outflows.

    d. none of the above.

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    https://brainmass.com/economics/personal-finance-savings/net-present-value-financial-appraisal-long-term-projects-156968

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    Please find my response below.

    The correct answer is (c) the present value of all cash inflows ...

    Solution Summary

    The solution discusses net present value.

    $2.49

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