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In capital budgeting, what does NPV stand for?
In capital budgeting, what does NPV stand for?
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Practice Questions
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In capital budgeting, what does NPV stand for?
Net Profit Value
Net Present Value
Net Payment Value
Net Profit Variance
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NPV stands for Net Present Value, which is the difference between the present value of cash inflows and outflows.
Questions & Step-by-step Solutions
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Q
Q: In capital budgeting, what does NPV stand for?
Solution:
NPV stands for Net Present Value, which is the difference between the present value of cash inflows and outflows.
Steps: 5
Show Steps
Step 1: Understand that NPV is an abbreviation.
Step 2: Learn that NPV stands for Net Present Value.
Step 3: Know that Net Present Value is a financial concept used in capital budgeting.
Step 4: Recognize that NPV calculates the difference between cash inflows (money coming in) and cash outflows (money going out).
Step 5: Remember that NPV helps determine if an investment is profitable.
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