A Project Has a Net Present Value of $1,200 and a Project

Multiple Choice

A project has a net present value of $1,200 and a project life of 4 years.Which one of these statements must be true?

A) The project's total cash inflows minus its cash outflows equals $1,200.
B) The project is expected to return $1,200 in Time 0 dollars over and above the discount rate.
C) The project would also have a positive net present value if Year 4 was omitted.
D) The project's cash inflows exceed its outflows by $1,200 over the 4 years.
E) The project is expected to return $1,200 in Year 4 dollars over and above the initial investment.