A financial manager is evaluating a project which is expected to gener

A financial manager is evaluating a project which is expected to generate profits of $100,000 per
year for the next 10 years. The project should be accepted if

A) the cost of the project is less than $1,000,000.
B) this project’s expected profits are higher than any other projects the corporation has available.
C) the cost of the project is less than the present value of $100,000 per year for 10 years.
D) the present value of the project’s cash inflows exceeds the present value of the project’s cash
outflows.

ANSWER

D