The marginal decision rule will be replaced with the net present value rule when:

Question

Quizplus · Accepted Answer

The net present value rule takes into account the present value of future costs and benefits, and compares them to the initial cost of the investment. This makes it more applicable in situations where costs are incurred immediately, as it considers the time value of money. The marginal decision rule is still applicable in certain situations, but the net present value rule offers a more comprehensive analysis in most cases.

The Marginal Decision Rule Will Be Replaced with the Net