You should invest in a project if the cost you incur today is greater than the present value of the future payments from the project.

Question

Quizplus · Accepted Answer

This statement is incorrect. You should invest in a project if the present value of the future payments from the project is greater than the cost you incur today. This is because the present value of future payments takes into account the time value of money, meaning that future payments are discounted to reflect their lower value in today's dollars.

You Should Invest in a Project If the Cost You