The present value of an investment's future cash flows divided by the initial cost of the investment is called the:
A. net present value.
B. internal rate of return.
C. average accounting return.
D. profitability index.
E. profile period.
Answer: D
The present value of an investment's future cash flows divided by the initial cost of the investment is called the:
A. net present value.
B. internal rate of return.
C. average accounting return.
D. profitability index.
E. profile period.
Answer: D