what is the interpretation of the net present value of a project? elect one: a....

90.2K

Verified Solution

Question

Accounting

image
what is the interpretation of the net present value of a project? elect one: a. It measures the amount of cash generated by a project that will be paid out to the investors. b. It measures the sum of the future positive cash flows of a project. c. It measures the net value generated by the project, and thus the increase in wealth of the shareholders as a result of the project. O d. It measures the rate of the profitability of a project per $1 of the initial investment. If the cost of capital remains unchanged, and the projected cash flows remain the same except year 3 cash flow changes from $400 to $600 Select one: a. the internal rate of return of the project will decrease. O b. the internal rate of return of the project will increase. c. the directional impact on the internal rate of return of the project is uncertain without knowing the entire set of cash flows. d. the internal rate of return of the project will remain unchanged

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students