If the present value of a cash flow generated by an initial investment of $200,000 is
$250,000,
What is the NPV of the project?
A) $250,000
B) $50,000
C) $200,000
D) None of the above

Question

Quizplus · Accepted Answer

The NPV (Net Present Value) of the project is the difference between the present value of cash inflows and the present value of cash outflows. In this case, the initial investment is $200,000 and the present value of cash inflows is $250,000. Therefore, the NPV is $250,000 - $200,000 = $50,000. The correct choice is B.

If the Present Value of a Cash Flow Generated by an Initial