Multiple choice

Which of the following statements is/are true about NPV?

  1. It considers the time value of money.

  2. It considers all the cash flows.

  3. It gives more weightage to distant flows than to near-term flows.

  4. Only 1 and 2

  5. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Both 1 and 2 are considered in NPV method.

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