Question
For projects with conventional cash flows, which of the following is correct if the total future cash flows are less than the initial cost? A.
For projects with conventional cash flows, which of the following is correct if the total future cash flows are less than the initial cost?
A. NPV is always negative.
B. The profitability index is always greater than one.
C. NPV will increase as the required return increases.
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
12th edition
978-0324597714, 324597711, 324597703, 978-8131518571, 8131518574, 978-0324597707
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