Net present value is best defined

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Reference no: EM132022497

1. Net present value (Npv) is best defined

A. The difference between a project benefits and it’s costs

B. The difference between the present value of projects benefits and the present value of its costs

C. The present value of a project benefits

D.The ratio of the present value of a project benefits and its costs

2. All else being equal, is that replaces equity in a profitable companies capital structure, which of the following occurs?

A. Interest expense increases, reducing taxable income and reducing taxes

B. Interest expense increases, reducing net income and earnings per share

C. Interest expense increases, reducing cash flow’s available to shareholders

D. Interest expense increases, reducing profitability in the wealth of shareholders

Reference no: EM132022497

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