Answer:
(A) True
Explanation:
Net present value: In this approach, the initial investment is subtracted from the cash inflows of the discounted present value. If the sum comes in positive than the project would otherwise not be beneficial to the company.
In mathematically,
Net present value = Total present value of the future cash flows generated by the project after applying discount factor - the cost of the project
The discount factor should be computed by
= 1 ÷ (1 + discount rate) ^ years
