If the NPV of Project a Is + $120, That

question 48

Multiple Choice

If the NPV of project A is + $120, that of project B is -$40, and that of project C is + $40, what is the NPV of the combined project?

• A)+$100
• B)-$40
• C)+$70
• D)+$120

---

Definitions:

Operating Income

Income generated from a company's primary business operations, excluding revenue and expenses from non-operating activities such as investments.

Revenue

The total income generated by a business from its operational activities, such as sales of goods or services, before any expenses are deducted.

Accrued Revenue

Represents the income that has been earned but not yet billed or received by the company.

Prepaid Expense

Payments made in advance for goods or services to be received in the future, recorded as assets on the balance sheet.