The Net Present Value of a Project Is Projected at $210.How

question 56

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.

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