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When Calculating Net Present Value of an Investment,the Present Value

Question 22

Multiple Choice

When calculating net present value of an investment,the present value of the expected future cash flows represents:


A) The market value of the investment
B) The cost of the investment
C) The maximum price the firm will pay for the investment given the firm's cost of capital
D) The price of the asset at the market rate of interest in effect at that point in time.

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