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:

Phlegmatic

A temperament characterized by a calm, reliable, and even-keeled personality, often associated with a high threshold for emotional excitability.

Sanguine

Characterized by optimism or a positive attitude, especially in an apparently bad or difficult situation.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.

Intrinsic Motives

Internal driving forces that prompt action, based on personal satisfaction, curiosity, challenge, or enjoyment, rather than external rewards.