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Net present value (Npv) is best defined A. The difference between a project benefits and it’s...

Net present value (Npv) is best defined
A. The difference between a project benefits and it’s costs
B. The difference between the present value of projects benefits and the present value of its costs
C. The present value of a project benefits
D.The ratio of the present value of a project benefits and its costs
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Answer #1

The correct option is B.

NPV=Present value of inflows-Present value of outflows

where

Present value of inflows=cash inflow*Present value of discounting factor(rate%,time period).

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