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The Estimated Value Added of a Project, Which We Calculate

Question 13

Multiple Choice

The estimated value added of a project, which we calculate as the sum of the present value of all future after-tax incremental cash flows generated by an initial cash outlay, less the present value of the investment outlays, is best described as the:


A) capital profit
B) normal profit
C) economic profit
D) net present value

Correct Answer:

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