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In Using the Net Present Value (NPV)approach to Evaluating Credit

Question 1

Multiple Choice

In using the net present value (NPV) approach to evaluating credit policy alternatives,all other things equal,


A) the alternative with the highest NPV should be selected
B) the alternative with the lowest NPV should be selected
C) the alternative with the NPV closest to zero should be selected
D) the alternative with the present value of cash inflows closest to zero should be selected

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