Which statement accurately describes Net Present Value (NPV)?

Which statement accurately describes Net Present Value (NPV)?

• A. It is the sum of nominal cash inflows over the project life minus initial outlay.
• B. It is the internal rate at which net cash flows break even.
• C. It is the difference between the present value of cash inflows and the present value of cash outflows.
• D. It is the forecast of market demand for the project's product.

Answer: (C)