Net present value is the difference between the

A) future cash inflows and the capital investment.
B) future cash inflows and the present value of the capital investment.
C) present value of future cash inflows and the capital investment.
D) present value of future net income and the capital investment.

Present Value

The present value of a sum of money or series of cash flows expected in the future, discounted at a certain rate of return.

Net Present Value

The discrepancy between incoming and outgoing cash flows' current worth over a certain timeframe, utilized in long-term investment planning to evaluate an investment's profit potential.

Future Cash Inflows

The expected receipts of cash in the future from investments, operations, or other sources.