Net Present Value is the difference between:

A. present value of future cash inflows and the capital investment

B. future cash inflows and the present value of the capital investments

C. future cash inflows and the capital investments

D. present value of future net income and the capital investment

2. Suppose company A has a long history of profitability, and its outlook is more stable. Company B has yet to make a profit in its short history, and outlook of B is much more uncertain. Company A's cost of equity should be:

A. greater than that of Company B

b. equal to company B

c. less than that of company B

d. none of them is correct