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The Net Present Value Evaluation Technique Will Always Lead to a Wealth-Maximizing

Question 20

Multiple Choice

The net present value evaluation technique will always lead to a wealth-maximizing decision except when


A) choosing between mutually exclusive projects that have different cash flow patterns.
B) a firm does not have the cash available to invest today.
C) choosing between mutually exclusive projects that require different investment outlays.
D) The net present value technique will always result in a wealth-maximizing decision if the inputs are correct.

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