Which of the Following Statements Regarding Net Present Value (NPV)is

question 74

Multiple Choice

Which of the following statements regarding Net Present Value (NPV) is incorrect?

• A) The NPV represents the value of the project in terms of cash today.
• B) Good projects will have a positive NPV.
• C) The NPV of a project is the difference between the present value of its benefits and the present value of its costs.
• D) When faced with a set of alternatives, choose the one with the lowest NPV in order to minimize the preset value of costs.

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