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Which of the Following Statements Regarding Net Present Value (NPV)is

Question 21

Multiple Choice

Which of the following statements regarding Net Present Value (NPV) is INCORRECT?


A) The NPV represents the value of the project in terms of cash today.
B) Good projects will have a positive NPV.
C) The NPV of a project is the difference between the present value of its benefits and the present value of its costs.
D) When faced with a set of alternatives,choose the one with the lowest NPV in order to minimize the present value of costs.

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