Question: True or False. (If False, please explain why) Thanks! The NPV is the PV of all of aproject's outflows minus the PFV of all inflows.

True or False. (If False, please explain why) Thanks!

  1. The NPV is the PV of all of aproject's outflows minus the PFV of all inflows.
  2. The NPV tells us the expected dollar impact of a proposed project on the value of a firm.
  3. Excel's NPV function treats CF in year 1 as the CF in year 2.
  4. The capital budgeting rule is to accept a project if the IRR> NPV.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!