A project has a present value of future net cash inflows of $120,000 and an initial investment of $110,000. Calculate the excess present value index for the project. A. 91.67%
D is corrent. It is calculated as follows: Present value of future net cash inflows ÷ Initial investment × 100
A is incorrect because this amount is erroneously calculated by dividing the initial investment by the present value. B is incorrect because this is the present value of the net cash inflows. C is incorrect. This is the net present value of the project.
