Which of the following is NOT a true statement about net present value (NPV) analysis?
A) The NPV of a project is the sum of the present value of all future after-tax incremental cash flows generated by an initial cash outlay, minus the present value of the investment outlays.
B) Projects that have a positive NPV should be accepted, and projects that have a negative NPV should be rejected.
C) The NPV is the present value of the expected cash flows net of the costs needed to generate them.
D) The firm's after-tax marginal cost of capital is the appropriate discount rate for all projects.
Correct Answer:
Verified
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