Question

analysis is a method of calculating the expected net monetary gain or loss from a project by discounting all expected future cash inflows and outflows to the present point in time. a. Payback b. Cost of capital c. Cash flow d. Net present value

Answer 1

d. Net present value

Step-by-step explanation:

Net present value method: In this method the initial investment is deducted from the cash inflows of the discounted present value. If the sum comes in positive then the project would be accepted otherwise not be profitable to the company i.e to be rejected

The formula is shown below:

Net present value = Present value of all yearly cash inflows after applying discount factor - initial investment

The other items which is mentioned are irrelevant. Hence, ignored it