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:

B2B

Refers to business-to-business transactions, where one company provides products or services directly to another company.

Buying Systems

The organizational structures and processes through which companies purchase goods and services.

Committee

A group of individuals appointed to perform a specific task or to deliberate on a particular issue, often within a larger organization or assembly.

B2B

Business-to-Business, referring to transactions or strategies between two or more businesses rather than between businesses and individual consumers.