Which one of these is the best indicator that acquiring a firm is a good idea?
A) The firm has a positive NPV at an appropriate discount rate.
B) The firm has a negative NPV at all positive discount rates.
C) The firm has a positive NPV at the riskless rate of return.
D) The firm has increasing cash inflows.
E) The firm is growing on an annual basis.
Correct Answer:
Verified
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