Suppose you estimate the net present value (NPV) for a project with a $400,000 initial investment to be $550,000. How would you explain the meaning of the $550,000 net present value (NPV) to a nonfinancial manager?

A) The project benefits outweigh the costs by $150,000 on a present value basis.

B) The positive NPV indicates this project is expected to increase the value of the firm by $150,000

C)The project benefits outweigh the costs by $400,000 on a present value basis.

D) The positive NPV indicates this project is expected to increase the value of the firm by $550,000.