Which of the Following Formulas Regarding NPV Is Incorrect

question 43

Multiple Choice

Which of the following formulas regarding NPV is incorrect?

• A) NPV + PV(benefits) = PV(Cost)
• B) NPV + PV(costs) = PV(benefits)
• C) NPV = PV(All project cash flows)
• D) NPV = PV(benefits) - PV(costs)

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Definitions:

Trinomial

An algebraic expression made up of three terms.

Factored Form

Expressing a polynomial as a product of its factors, which can be simpler polynomials or constants.

Factor

A number or algebraic expression that divides another number or expression evenly, with no remainder.

Trinomial

A polynomial consisting of three terms or monomials, often in the form ax^2 + bx + c.