Question
Which following statement is FALSE about Net Present Value (NPV)? a) Net present value is the best method of analyzing mutually exclusive projects. b) If
Which following statement is FALSE about Net Present Value (NPV)?
a) Net present value is the best method of analyzing mutually exclusive projects.
b) If a project has a net present value of zero, the project's cash inflows equal its cash outflows in current dollar terms.
c) If probability index is equal to one, it implies that net present value is equal to zero.
d) Net present value indicates the length of time a firm must wait to recoup the money it has invested in a project.
e) If a project has a net present value equal to zero, then the project earns a return exactly equal to the discount rate.
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