Identify a true statement about net present value $($NPV$),$ a commonly used form of discounted cash flow analysis for evaluating investment decisions.

Multiple choice question.

NPV asks, "Given a particular level of expenditure, particular level$($s$)$ and rate of cash inflows, and a discount rate, what is this project worth today?"

Unlike internal rate of return $($IRR$),$ NPV does not enable a decision maker to incorporate some basic measure of risk.

Unlike internal rate of return $($IRR$),$ NPV does not require managers to use estimates of the size and timing of expenditures.

NPV asks, "Given a particular level of expenditure and particular level$($s$)$ and rate of cash inflows, what rate of return does this project yield?"