AFP
CTP · Question #2
(Topic 1) When a project has an initial cash outflow with cash inflows in subsequent years, what decision model is most applicable to use to evaluate the adequacy of the project?
The correct answer is B. Net present value. See the full explanation below for the reasoning.
Question
- (Topic 1)
When a project has an initial cash outflow with cash inflows in subsequent years, what decision model is most applicable to use to evaluate the adequacy of the project?
Options
- AMonte Carlo
- BNet present value
- CPayback period
- DProfitability index
How the community answered
(23 responses)- A4% (1)
- B87% (20)
- D9% (2)
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