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Discounted Cash Flow (NVP)

Last updated over 1 year ago

6 questions

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Question 1

1.

Discounted cash flow takes account of the "time value of money" in order to: _________

Question 2

2.

Why might it be important to take into account the "time value of money"

Question 3

3.

How is present value calculated?

Question 4

4.

What is the present value is the cash flow is 20,000 and the discount factor is 0.9?

Question 5

5.

Give 2 benefits of using NVP

Question 6

6.

Give one drawback of using NVP and explain it