Question $16($Mandatory$)(5$ points$)$

Which of the following statements is correct?

A$)$ Because initial cost is a sunk cost, we should not consider or include the initial cost when we calculate the net present value of the project.

B$)$ When deciding which projects to accept, NPV is generally regarded as the best single criterion.

C$)$ The NPV of a project measures the intrinsic value of the project.

D$)$ Investors should require a higher NPV if the project has higher risk.