A positive net present value indicates that the cost of the project is greater than the present values of the expected cash flows from the project.

Question

Quizplus · Accepted Answer

A positive net present value indicates that the present values of expected cash inflows from the project are greater than the cost of the project, which is a favorable outcome for the project. Therefore, the statement given in the question is false.

A Positive Net Present Value Indicates That the Cost of the Project