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City and Regional Planning QUESTION #4936
Question 1
In cost-benefit analysis, what does NPV stand for?
  • Net Present Value✔️
  • National Planning Vision
  • Nominal Project Value
  • New Property Valuation
Correct Answer Explanation
NPV (Net Present Value) calculates the present value of future cash flows minus initial investment: $NPV = \sum_{t=0}^{n} \frac{C_t}{(1+r)^t}$ where $C_t$ is cash flow at time t and r is discount rate.