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Given the Following Sensitivity Analysis, Which of the Following Statements

Question 160

Multiple Choice

Given the following sensitivity analysis, which of the following statements is true? Given the following sensitivity analysis, which of the following statements is true? A) Only an annual net cash flow of $700,000 will allow for a positive residual value. B) The total amount to be invested is $3,050,000. C) The annual net cash flow necessary to generate a positive net present value is above $700,000. D) The investment is not justified if the annual net cash flow will be $500,000 or $600,000.


A) Only an annual net cash flow of $700,000 will allow for a positive residual value.
B) The total amount to be invested is $3,050,000.
C) The annual net cash flow necessary to generate a positive net present value is above $700,000.
D) The investment is not justified if the annual net cash flow will be $500,000 or $600,000.

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