The difference between present value of investment-cost

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Reference no: EM132007758

1. All else being constant, the net present value of a project increases when:

A. all cash inflows occur during the last year of a project's life instead of periodically throughout the life of the project.

B. the initial cost of a project increases.

C. each cash inflow is delayed by one year.

D. the discount rate increases.

E. the required rate of return decreases.

2. The difference between the present value of an investment and its cost is the:

A. payback period.

B. net present value.

C. internal rate of return.

D. profitability index.

E. discounted payback period.

Reference no: EM132007758

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