asked 103k views
2 votes
The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of return is known as the ________ model.

asked
User Mr Teeth
by
8.0k points

1 Answer

4 votes

Answer:

Net present Value (NPV)

Step-by-step explanation:

The net present value (NPV) is one of the tools used in business for appraising the desirability or otherwise of projects or investments. It compares the present value (PV) of cash inflows with the present value of cash outflows over a period of time. It is the difference between the present value of the future cash inflows from an investment and the amount of initial capital outlay that gives either profit or loss.

answered
User Hexwab
by
8.6k points
Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.