The net present value of a project is projected at $210.How should this amount be interpreted?
A) The project's cash inflows exceed its outflows by $210.
B) The project will return an accounting profit of $210.
C) The project's discounted cash flows are $210 less than its undiscounted cash flows.
D) The project will increase the firm's cash account by $210 when the project is started.
E) The project is earning $210 in addition to the project's required rate of return.
Correct Answer:
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