Multiple Choice
Net present value _____________.
A) Is equal to the initial investment in a project
B) Compares project cost to the present value of the project benefits
C) Is equal to zero when the discount rate used is less than the IRR
D) Is simplified by the fact that future cash flows are easy to estimate
E) Requires the firm set an arbitrary cutoff point for determining whether an investment is acceptable
Correct Answer:
Verified
Correct Answer:
Verified
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