Question

The difference between the present value of future cash inflows and the present value of future cash outflows of an investment project is the:

Answer 1

Answer:

The correct answer is "Net present value"

Explanation:

The Net present value (NPV) commonly is used in projects and investments to analyze the profitability and compare it with other projects or investments to decide which is better.  

Net Present Value (NPV) = Cash flow / (1 + discount rate) ^ number of time periods.