If the net present value of a proposed investment is positive:
A) the cost of the investment is more than the present value of the future cash flows.
B) the investment does not earn the required rate of return.
C) the present value of the future cash flows would be unaffected by the proposed investment.
D) the business should make the investment because the present value of the future cash flows is more than the cost of the investment.
Correct Answer:
Verified
Q82: Under the NPV method, the rate of
Q84: Average annual after-tax profits per year divided
Q85: Ralph has always enjoyed fireworks and has
Q88: IRR:
A)takes into account that cash received today
Q89: Dana produces fine chocolates for her retail
Q90: An understanding of the present value of
Q94: After defining capital budgeting,give examples of the
Q96: What are key issues in managing accounts
Q98: "How does the present value of future
Q117: After discussing three techniques for making capital
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents