Multiple Choice
The net present value of a project is projected at $210.How should this amount be interpreted?
A) The project's cash inflows exceed its outflows by $210.
B) The project will return an accounting profit of $210.
C) The project's discounted cash flows are $210 less than its undiscounted cash flows.
D) The project will increase the firm's cash account by $210 when the project is started.
E) The project is earning $210 in addition to the project's required rate of return.
Correct Answer:
Verified
Correct Answer:
Verified
Q18: If the discounted payback method is preferable
Q24: A 5-year project requires $65,000 of fixed
Q33: All else constant,the net present value of
Q60: The payback method<br>A)discounts all cash flows properly.<br>B)requires
Q70: Project Water has an initial cost of
Q71: A project has an initial cost of
Q72: A project initially costs $40,500 and will
Q74: You are considering two independent projects both
Q76: Assume you are looking at a graph
Q80: Two mutually exclusive projects produce the same