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Using the Net Present Value Method, the Decision Rule for Projects

Question 25

Multiple Choice

Using the Net Present Value method, the decision rule for projects when finance is not a restriction is:


A) take on all projects with a positive NPV.
B) select the project with the largest cash inflows.
C) select the project where the cash inflows are greatest in the early years of the project.
D) select the project with cash flows equal to the initial investment.

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