Solution-Which is not a true statement about net present

Which is not a true statement about net present value

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Problem 1: Which of the following is NOT a true statement about net present value (NPV) analysis?

a) The NPV of a project is the sum of the present value of all future after-tax incremental cash flows generated by an initial cash outlay, minus the present value of the investment outlays.

b) Projects that have a positive NPV should be accepted, and projects that have a negative NPV should be rejected.

c) A positive NPV means the project is earning a rate of return less than the discount rate.

d) The firm's after-tax marginal cost of capital is the appropriate discount rate for all projects.

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Which is not a true statement about net present value

Reference no: EM132770418

Reference no: EM132770418

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