1. Which of the following is required to compute the NPV of a project?

A. Cost of the project

B. Life of the project

C. Required rate of return

D. All of these choices are correct.

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2. Net present value is calculated by:

A. (Present value of projects future cash inflows) (Present value of the projects cost)

B. (Present value of the projects cost) (Present value of projects future cash inflows)

C. (Present value of the project) (Required return on the investment)

D. (Present value of the projects future cash inflows) (Present value of the projects cost) + (Required return)