In the NPV model, all cash flows are stated ________
A) in future value dollars, and the total inflow is "netted" against the outflow to see if the net amount is positive or negative
B) in present value or current dollars, and the outflow is "netted" against the total inflow to see if the gross amount is positive or negative
C) in present value or current dollars, and the total inflow is "netted" against the initial outflow to see if the net amount is positive or negative
D) in future dollars, and the initial outflow is "netted" against the total inflow to see if the net amount is positive
Answer: C
You might also like to view...
The deviation from the traditional methods used to interpret an accounting rule or standard is called:
a. Aggressive accounting b. Creative Accounting c. Interpretive Accounting d. Deviate Accounting
A decentralized business organization is one in which all major planning and operating decisions are made by top management
Indicate whether the statement is true or false