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A Project Is Accepted Under the Net Present Value Method

Question 20

Multiple Choice

A project is accepted under the net present value method when


A) the percentage return is greater than a predetermined minimum percentage.
B) total net cash inflows exceed the purchase price of the asset.
C) the purchase price of the asset is less than the present value of net cash inflows.
D) the present value of net cash inflows exceeds a predetermined minimum amount.

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