contestada

If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal.
A. True
B. False

Respuesta :

Answer:

False

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

If projects been examined have different initial investments, it doesn't affect comparison between the projects.

Only projects with positive NPV should be chosen and if both projects have a positive NPV, the project with the higher NPV should be chosen

It is only when they have different life spans that comparison might be affected.

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