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Question
If the net present value of a proposed investment is positive,
a. the cost of the investment is more than the present value of the future cash flows.
b. the investment does not earn the required rate of return.
c. the present value of the future cash flows would be unaffected by the proposed investment.
d. the firm should make the investment because the present value of the future cash flows is more than the cost of the investment.
Answer
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