Which of the following is a correct description of the key features of net present value?
A.
It adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.
B.
It adjusts the relevant cash flows of a project to reflect the time value of money. The discount rate used reflects the risk of the project.
C.
It adjusts the relevant profits of a project to reflect the time value of money. The discount rate used reflects the risk of the project.
D.
It adjusts the relevant cash flows of a project after the deduction of depreciation charges to reflect the time value of money. The discount rate used is always the company's weighted average cost of capital.
Chosen Answer:
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