A Financial Manager Is Evaluating a Project Which Is Expected

Multiple Choice

A financial manager is evaluating a project which is expected to generate profits of $100,000 per year for the next 10 years.The project should be accepted if

A) the cost of the project is less than $1,000,000.
B) the cost of the project is less than the present value of $100,000 per year for 10 years.
C) this project's expected profits are higher than any other projects the corporation has available.
D) the present value of the project's cash inflows exceeds the present value of the project's cash outflows.