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EC-Council

512-50 · Question #329

If the result of an NPV is positive, then the project should be selected. The net present value shows the present value of the project, based on the decisions taken for its selection. What is the…

The correct answer is C. Average profit - Annual investment. See the full explanation below for the reasoning.

Question

If the result of an NPV is positive, then the project should be selected. The net present value shows the present value of the project, based on the decisions taken for its selection. What is the net present value equal to?

Options

  • ANet profit - per capita income
  • BTotal investment - Discounted cash
  • CAverage profit - Annual investment
  • DInitial investment - Future value

How the community answered

(29 responses)
  • A
    3% (1)
  • B
    7% (2)
  • C
    76% (22)
  • D
    14% (4)

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Full 512-50 Practice