Project Managment Which best describes the NPV of a project? The future monetary
ID: 431261 • Letter: P
Question
Project Managment
Which best describes the NPV of a project?
The future monetary value of a project
The order in which projects should be undertaken
The present value of a projects future cashflows
The present value of a project's future cashflows, less the initial cost of the project
The value of a project, minus the value of other alternative projects.
A.The future monetary value of a project
B.The order in which projects should be undertaken
C.The present value of a projects future cashflows
D.The present value of a project's future cashflows, less the initial cost of the project
E.The value of a project, minus the value of other alternative projects.
Explanation / Answer
Net present value (NPV) is used to determine the current value of all future cash flows generated by a project after deducting the initial capital investment. Hence the correct option is d. The present value of a project's future cashflows, less the initial cost of the project
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