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An estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment, is known as:

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Answer: Net present value

Step-by-step explanation:

The net present value are series of cash flows made by an economic agent that occurs at different times and it is based on the discount rate as it denotes time value of money.

It is the estimate of an asset's value to the company, calculated by discounting the future cash flows from the investment at the project's required rate of return and then subtracting the initial amount of the investment.

User Sredny M Casanova
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