Question

If the Present Value of Cash Inflows are greater than the Present Value of Cash Outflows, the project would be

Answer 1

Answer:

The project would be accepted.

Answer 2

Introduction:

When the cash inflow is more than the cash outflow, the cash flow is considered to bepositive. Gains from an investment are included in the cash inflow. It includes the cash that customers pay for the items or services that are sold right away.

Explanation:

Since the present value value of the cash inflow is more than the outflow, the project will be accepted.

Net present value is computed with the formula given below:

Net present value =( Present value of annual cash inflows - Present value of annual cash outflows )