Economics · Cost-Benefit Analysis
In Cost-Benefit Analysis, the Net Present Value (NPV) of a project is defined as:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The internal rate of return of the project
- 2The ratio of total benefits to total costs
- 3The sum of discounted benefits minus the sum of discounted costs over the project's lifetime✓
- 4Total Benefits minus Total Costs (undiscounted)
Correct answer
The sum of discounted benefits minus the sum of discounted costs over the project's lifetime
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