Question: Which statement concerning the NPV of an investment…
Which statement concerning the NPV of an investment or a financing project is correct?
- A) Any type of project with greater total cash inflows than total cash outflows, should always be accepted.
- B) An investment project that has positive cash flows for every time period after the initial investment should be accepted.
- C) A financing project should be accepted if, and only if, the NPV is exactly equal to zero.
- D) An investment project should be accepted only if the NPV is equal to the initial cash flow.
- E) Any type of project should be accepted if the NPV is positive and rejected if it is negative.
