A project's contingent net present value (NPV )will always be greater than or equal to its standard NPV.

Question

Quizplus · Accepted Answer

This statement is true. The contingent NPV takes into account the potential outcomes of various scenarios, while the standard NPV assumes a single outcome. Therefore, the contingent NPV considers the risk involved in the project and is likely to account for a range of potential outcomes, including positive and negative scenarios, which could increase its value compared to the standard NPV. Thus, the contingent NPV is generally equal to or greater than the standard NPV.

A Project's Contingent Net Present Value (NPV )Will Always Be