When profits and costs occur in the future, the _ the profit occurs and the the cost occurs, the likely the net present value will be .
A)sooner; later; more; negative
B)later; sooner; more; positive
C)sooner; later; less; positive
D)sooner; later; more; positive

Question

Quizplus · Accepted Answer

The sooner the profit occurs and the later the cost occurs, the more positive the net present value will be. This is because if profits are earned earlier, they can be invested or reinvested, earning a return. If costs are delayed, there is more time for income to be generated before those costs must be paid. Both of these factors increase the net present value.

When Profits and Costs Occur in the Future, the _