The net present value is ______?

خالص موجودہ قیمت ______ ہے؟

Leads to the same decisions as the use of the payback period

Is calculated by discounting all cash flows to present value and subtracting outflows from inflows

Calculates the rate of return which leaves you indifferent between undertaking the project, and not undertaking the project

None of these

Explanation

Net Present Value (NPV) measures the profitability of an investment by discounting future cash flows to present value and subtracting initial costs.

A positive NPV indicates a profitable project, while a negative NPV suggests a loss.