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AlliedTech Aims to Make a Capital Investment

Question 51

Multiple Choice

AlliedTech aims to make a capital investment. After a careful analysis, the company finds out that the net present value (NPV) of the investment is less than zero. It is evident that AlliedTech:


A) is unlikely to make the investment.
B) is likely to make the investment.
C) is likely to obtain a break-even return.
D) is unlikely to obtain negative returns.

Correct Answer:

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