The net present value: ignores cash flows that are distant in the future. is equal to the initial investment when the internal rate of return is equal to the required return. method of analysis cannot be applied to mutually exclusive projects. is unaffected by the timing of an investment's cash flows. decreases as the required rate of return increases.

Question

Fun Dip

Mathematics

12 November, 01:09

The net present value: ignores cash flows that are distant in the future. is equal to the initial investment when the internal rate of return is equal to the required return. method of analysis cannot be applied to mutually exclusive projects. is unaffected by the timing of an investment's cash flows. decreases as the required rate of return increases.

+2

Answers (1)

Know the Answer?

Taniya Hoover · Answer 1

decreases as the required rate of return increases.

Step-by-step explanation:

Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time. This differences tend to reduce as the requires rate of return increases.