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Which of the following is a correct description of the key features of net present value?
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B. 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.
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 to reflect the time value of money. The discount rate used reflects the risk of the project.
Answer: D
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