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Katen [24]
2 years ago
15

A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called

Business
1 answer:
Kazeer [188]2 years ago
5 0

Answer:

Net present value

Explanation:

Below is the given values:

Net present value is the correct answer.

Initial cost of the project = $31800

Market value of the project = $29600

The difference between these two are = 31800 - 29600 = $2200

Net present value shows that the present value of cash inflows minus cash outflows. Moreover, the present value comes by discounting the cash flows at an applicable discount rate.

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