If the present value of the benefits received outweigh the present value of the costs incurred,then a company should make the decision to invest in the project.

Name: If the present value of the benefits received outweigh the present value of the costs incurred,then a company should make the decision to invest in the project.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This is the basic principle of investment decision making - if the present value of benefits is greater than the present value of costs, the project should be pursued.

If the Present Value of the Benefits Received Outweigh the Present