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Spitzer Company Is Considering Two Investments

Question 53

Multiple Choice

Spitzer Company is considering two investments.If the differential approach to investment decisions is used,which of the following steps is NOT used?


A) list the differences in cash flows for each investment for each year
B) calculate the net present value of the differential cash flows
C) identify the relevant cash flows
D) calculate the net present value of the cash flows for each investment

Correct Answer:

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