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A Project's Net Present Value Is Equal To

Question 10

Multiple Choice

A project's net present value is equal to:


A) the present value of the expected future cash inflows minus the present value of all the cash outflows.
B) the future value of the cash outflows plus the present value of cash inflows.
C) the present value of the final cash inflow.
D) the future value of all the expected future cash outflows minus the project's initial cost.
E) the present value of all the cash inflows that remain after the full recovery of the initial investment in the project.

Correct Answer:

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