Multiple Choice
If the net present value of a proposed investment is negative,
A) the cost of the investment is less than the present value of the future cash flows.
B) the investment earns the required rate of return.
C) the present value of the future cash flows would be unaffected by the proposed investment.
D) the firm should not make the investment, since the present value of the future cash flows is less than the cost of the investment.
Correct Answer:
Verified
Correct Answer:
Verified
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