Question

When calculating a project’s net present value, which type of cash flows should be considered? Question 2 options: A) Free cash flows B) Net operating profit cash flows C) Operating cash flows D) External cash flows E) Alternative cash flows

Answer 1

Answer:

Operating cash flows

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV is a capital budgeting method used to determine profitable investments