Danielle, the Regional Manager of CDz Music Stores, Is Trying

Multiple Choice

Danielle, the regional manager of CDz Music Stores, is trying to determine if the store should invest in a new computerized inventory tracking system. Using financial analysis, she can decide that the investment is desirable if:

A) the present value of the expected future cash flows from the project is less than the cost of the project.
B) its computed Net Present Value is positive.
C) its computed Net Present Value is negative.
D) the firm has enough cash to make the purchase without having to arrange additional financing.