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The Primary Reason That a Company's Projects with Positive Net

Question 14

Multiple Choice

The primary reason that a company's projects with positive net present values are considered acceptable is that:


A) the required cash inflows exceed the actual cash inflows.
B) they return the initial cash outlay within three years or less.
C) the project's rate of return exceeds the rate of inflation.
D) they create value for the owners of the firm.
E) the investment's cost exceeds the present value of the cash inflows.

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