Which statement best describes the impact of earlier cash inflows on project evaluation?

Which statement best describes the impact of earlier cash inflows on project evaluation?

• A. Earlier cash inflows generally increase NPV and make the project more attractive.
• B. Earlier cash inflows reduce the net present value.
• C. Earlier cash inflows have no effect on profitability.
• D. Earlier cash inflows always increase operating costs.

Answer: (A)