Question
Which statement concerning the net present value (NPV) of an investment or a financing project is correct? 1 any type of project with greater total
Which statement concerning the net present value (NPV) of an investment or a financing project is correct?
1 any type of project with greater total cash inflows than total cash outflows, should always be accepted.
2. An investment project that has positive cash flows for every time period after the intital investment should be accepted.
3.An investment project should be accepted only if the NPV is equal to the initial cash flow.
4. Any type of project should be accepted if the NPV is positive and rejected if it is negative.
5. A financing project should be accepted if, and only if, the NPV is exactly equal to zero.
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