In the NPV Model, All Cash Flows Are Stated ________

question 12

Multiple Choice

In the NPV Model, all cash flows are stated ________.

• A) in future value dollars, and the total inflow is "netted" against the outflow to see if the net amount is positive or negative
• B) in present value or current dollars, and the outflow is "netted" against the total inflow to see if the gross amount is positive or negative
• C) in present value or current dollars, and the total inflow is "netted" against the initial outflow to see if the net amount is positive or negative
• D) in future dollars, and the initial outflow is "netted" against the total inflow to see if the net amount is positive

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