Which of the following statements is FALSE? The NPV of a project is the difference between the present value of its benefits and the present value of its costs. We define the risk-free interest rate for a given period as the interest rate at which money can be borrowed or lent without risk over that period. In financial markets it is impossible to sell a security you do not own. When we compute the return of a security based on the average payoff we expect to receive, we call it the expected return. In general, money today is worth more than money in one year