Firms should finance a project if its:
A) expected cash flow is positive.
B) net cash flow is positive.
C) internal rate of return is positive.
D) net present value is positive.
Correct Answer:
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Q1: The discount rate that equates present value
Q2: The internal rate of return can be
Q3: Net present value equals: Q4: Capital budgeting is the process of planning Q5: Generally, a firm's estimated component cost of Q7: The change in net cash flows due Q8: A firm must choose between two projects, Q9: Acceptance of investment projects where IRR > Q10: Examples of mandatory nonrevenue-producing investments are provided Q11: Cash flows include depreciation:
A) ![]()
A) to account for
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