The decision rule for net present value declares that a project is acceptable if:
A) it pays back within a specified time period.
B) the rate of return is greater than the firm's cost of capital.
C) the present value of the cash inflows exceeds the initial cash outflow.
D) all of the statements above are true.
C
You might also like to view...
Briefly explain the negative impact of unresolved conflict on groups.
What will be an ideal response?
What is appealing about the gold standard is
A. everyone loves gold. B. its carrying costs. C. its transportability. D. its simplicity.
A 35-year-old employee who is fired because his employer incorrectly believes he is too old to
do his job does not have a valid age discrimination claim. Indicate whether the statement is true or false
Alexander Corporation issued 20-year bonds at a discount in Year 1. Will Alexander's net income for Year 1 be higher, lower, or the same as it would have been had the bonds been issued at face value? Why?
What will be an ideal response?