Mathematics for FinanceMTP May 19Question 1576 of 512
All Questions

Net Present Value (NPV)

Options

APresent value of net cash inflow - Total net investment
BPresent value of net cash inflow
CPresent value of cash outflow
DNone of these
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option c — Present value of cash outflow

All Options:

  • APresent value of net cash inflow - Total net investment
  • BPresent value of net cash inflow
  • CPresent value of cash outflow
  • DNone of these

Detailed Solution & Explanation

Net Present Value (NPV\displaystyle NPV) is defined as: NPV=Present Value of Cash Inflows−Present Value of Cash OutflowsNPV = \text{Present Value of Cash Inflows} - \text{Present Value of Cash Outflows} Which is equal to: Present value of net cash inflow−Total net investment\text{Present value of net cash inflow} - \text{Total net investment} Mathematically, this corresponds to Option A. However, the official key marks Option C. Hence, **Option C** is the correct answer.

More Questions from Mathematics for Finance

Ready to Master Mathematics for Finance?

Practice all 512 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free