A financial model that measures the current value of all cash inflows and outflows of a project using management's minimum desired rate of return is known as the _________ model.

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21-07-2022
Business

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A financial model that measures the current value of all cash inflows and outflows of a project using management's minimum desired rate of return is known as the _________ model.

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Parrain Parrain · Answer 1 · 2022-07-27T17:47:49+02:00

When a company uses a financial model that looks at the current value of cash inflows and outflows using a desired rate of return, this is the Net Present Value.

What is the Net Present Value?

This is a method of checking the profitability of a project by checking just how much a project brings in over its costs.

The cash inflows and outflows are therefore compared at their present value which involves discounting at a minimum desired rate of return.

Find out more on Net Present Value at https://brainly.com/question/14700911

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