The method that compares the present value of a project's future cash flows to the initial investment is... Accounting rate of return Payback Period Net present value Internal rate of return A positive net present value indicates that a project will... generate a return in excess of the firm's cost of capital. generate more cash than is Initially invested. generate more cash than alternative projects. generate a return in excess of alternative projects the internal rate of return is a measure of... the rate actually earned by the project, considering the time value of money. the rate actually earned by the project, based on accounting income. the rate used to discount the future cash flows to reflect the time value of money. the firm's cost of capital