A firm should make an investment if the present value of the cash inflows is
A) less than zero
B) greater than zero
C) less than the cost of the investment
D) greater than the cost of the investment
Correct Answer:
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Q44: A stand-alone perspective for capital budgeting suggests
A)
Q45: NPV may be preferred to IRR because
A)
Q46: A firm should not make an investment
Q47: Small standard deviations for cash inflows
A) reduces
Q48: If the internal rate of return of
Q50: The lack of correlation between an investment's
Q51: An increase in the cost of capital
Q52: If an investment's net present value is
Q53: The internal rate of return and net
Q54: Risk may be incorporated into capital budgeting
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