To determine annual cash inflow, depreciation is
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subtracted from net income because it is an expense. |
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added back to net income because it is not an outflow of cash. |
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subtracted from net income because it is an outflow of cash. |
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added back to net income because it is an inflow of cash. |
A negative net present value means that the
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project’s rate of return exceeds the required rate of return. |
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project’s rate of return equals the required rate of return. |
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project is acceptable. |
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project’s rate of return is less than the required rate of return. |