## What is the difference between Present Value (PV) and Net Present Value (NPV) 0

What is the difference between Present Value (PV) and Net Present Value (NPV)?

Present value is the current value of a set of cash inflows and outflows and Net present value is the current value of a set of cash inflows - Incorrect

Present value is the current value of a set of cash inflows and outflows and Net present value is the current value of a set of cash outflows

Present value is the current value of a set of cash inflows and Net present value is the current value of a set of cash inflows and outflows - Correct

Present value is the current value of a set of cash inflows and Net present value is the current value of a set of cash outflows

If you invested Rs. 10 lakhs (1 million) in a project and expect to get a steady cash flow of Rs. 1 lakhs (100,000) every year over the next 5 years. What is the NPV of this project assuming prevailing interest rates of 15%?

Rs. 615,067 - Incorrect

Rs.-6,64,784 - Correct

Rs. 500

Rs. 600,000  