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