If the present value of a cash flow generated by an initial investment of $ 200,000 is $ 250,000, what is the NPV of the project?
B. $ 50,000
1. A. $ 250,000
C. $ 200,000
D. None of the above
​Feedback: NPV =-200,000 + 250,000 = 50,000
Question 10 of 15
According to the net present value rule, an investment in a project should be made if the:
A. Net present value is greater than the cost of investment
B. Net present value is greater than the present value of cash flows
C. Net present value is positive
D. Net present value is negative
Question 11 of 15
An annuity is defined as
A. Equal cash flows at equal intervals of time for a specified period of time
B. Equal cash flows at equal intervals of time forever
C. Unequal cash flows at equal intervals of time forever
D. None of the above