All other project characteristics being equal, the project with the highest NPV should be chosen.

Question

Quizplus · Accepted Answer

NPV (Net Present Value) measures the present value of expected cash inflows minus the present value of expected cash outflows. It takes into account the time value of money and considers all cash flows over the life of the project. Therefore, the project with the highest NPV will generate the highest net cash inflow for the company and is the best choice.

All Other Project Characteristics Being Equal, the Project with the Highest