Under the net-present-value method,if the cost of the asset is less than the present value of the future cash flows,the:

Question

Quizplus · Accepted Answer

If the cost of the asset is less than the present value of the future cash flows, it means that the investment will generate positive net present value. In this case, the investment's expected return is greater than the firm's cost of capital, which makes it an attractive investment. Therefore, choice (C) is the best answer.

Under the Net-Present-Value Method,if the Cost of the Asset Is