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A Long-Term Operating Asset Should Be Acquired If

Question 17

Multiple Choice

A long-term operating asset should be acquired if

A) The cost of purchasing the long-term operating asset is less than the expected cash inflows, adjusted for the time-value of money, generated by the long-term operating asset
B) The cost of purchasing the long-term operating asset is more than the expected cash inflows, adjusted for the time-value of money, generated by the long-term operating asset
C) The cost of purchasing the long-term operating asset is less than the expected cash inflows, not adjusted for the time-value of money, generated by the long-term operating asset
D) The cost of purchasing the long-term operating asset is more than the expected cash inflows, not adjusted for the time-value of money, generated by the long-term operating asset

Correct Answer: