Net Present Value (NPV)

Last updated about 7 years ago

3 Nsɛmmisa

$5,000 can be invested today and if it earns 6% interest each year for the next 5 years it will accumulate to $6,691.
Time is important as it provides you with the opportunity to earn interest.
$5,000 today will also buy more than $5,000 in 5 years time.

Correct answer: Take the money today!