Solved

If the Net Present Value of a Proposed Investment Is

Question 84

Multiple Choice

If the net present value of a proposed investment is positive,


A) the firm should not make the investment because the initial outlay of the investment exceeds the present value of the cash flows discounted at the rate of return required to satisfy the firm's investors.
B) the investment does not earn the rate of return required to satisfy the firm's investors.
C) the present value of future cash flows would be unaffected by the proposed investment.
D) the firm should make the investment because the present value of future cash flows discounted at the rate of return required to satisfy the firm's investors exceeds the initial outlay of the investment.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents