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3. Which one of the following statements is TRUE about a project's net present value? A....

3. Which one of the following statements is TRUE about a project's net present value? A. When choosing between projects, a company should take on the project with the lowest net present value B. When deciding to accept or reject a project, a company should reject the project if its net present value is positive C. A project's net present value provides the payback period of an investment B. When deciding to accept or reject a project, the project's net present value is irrelevant to the decision E. A project's net present value is the sum of the present value of each of the project's cash flow including the initial investment amount

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E. A project's net present value is the sum of the present value of each of the project's cash flow including the initial investment amount

Net present value is calculated by subtracting initial investment from present value of cash inflows.

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