In MS-Excel, the NPV (Net Present Value) function calculates the present value of a series of cash flows based on a specified discount rate. It is used to evaluate the profitability of an investment or project by bringing all future cash flows (both positive and negative) back to their present-day value. Option A accurately describes this function: "the net present value of an investment based on discount rate and series of future payments and income".
In MS-Excel 2007, NPV(rate, value1, [value 2], ...) is a financial function that returns
Asked in UPSC CISF AC EXE 2019 · Topic: Hardware and Software Fundamentals (System Software: Compilers, Interpreters, Assemblers, Linkers, Loaders, Utility Software)
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Answer: A. the net present value of an investment based on discount rate and series of future payments and income
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