Which of the following statements about the net present value is false? 

a. In NPV analysis net cash flows are discounted at the industry’s average rate of return 

b. If NPV is positive or equals to zero, the project should be accepted 

c. If NPV is positive, then the present value of net cash flows exceeds the net investment required 

d. The net present value (NPV) of an investment is defined as the present value of the stream of net cash flows from the project minus the project’s net investment

Answer rating: 100% (QA)

Option D The net present value NPV of an investment is defined as the present value of the ... View the full answer