Engineering Economics

Pick up the correct statement from the following:

  • A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed
  • B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project
  • C. As the discount rate increases, the net present value profile slopes downward to the right
  • D. All of these
Answer: Option D.

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