Suppose You Determine That the NPV of a Project Is

question 38

Multiple Choice

Suppose you determine that the NPV of a project is $1,525,855. What does that mean?

• A) If they are mutually exclusive, this project should be preferred to one that has an NPV of $850,000.
• B) The project would add value to the firm.
• C) The present value of positive cash flows exceeds the present value of negative cash flows.
• D) All of the above

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