An analysis of a proposal by the net present value method indicated that the present value exceeded the amount to be invested.Which of the following statements best describes the results of this analysis?
A) The proposal is desirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
B) The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
C) The proposal is undesirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
D) The proposal is undesirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
Correct Answer:
Verified
Q43: The process by which management allocates available
Q47: Using the following partial table of present
Q48: The two methods that use present value
Q49: An anticipated purchase of equipment for $1,000,000,with
Q57: The primary advantages of the average rate
Q60: A capital expenditures budget summarizes the decisions
Q62: The process by which management plans, evaluates,
Q62: When several alternative investment proposals of the
Q78: In general, present value methods of analyzing
Q80: Which of the following can be used
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