If the present value of the net cash flows expected from a machine is less than its purchase price,the investment should not be made.

Name: If the present value of the net cash flows expected from a machine is less than its purchase price,the investment should not be made.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the present value of the net cash flows is less than the purchase price, it means that the investment is not profitable and will not generate a positive return. Therefore, it is not recommended to make such an investment.

If the Present Value of the Net Cash Flows Expected