Three steps required to evaluate investments using the net present value are:
1. Identify the amount and timing of the _________ _________ required over the life of the investment
2. Establish an appropriate interest rate to be used for evaluating the investment, called the _________ ___ _________
3. Calculate and evaluate the net present value of the investment.
a. initial investment
b. required funds
c. cash inflows
d. revenue generation

a. nominal rate of return
b. discount rate
c. capital expenditure
d. interest rate

a. cash flows
b. return on investment
c. profitability index
d. net present value

a. net income
b. projected earnings
c. investment cost
d. present value factor