Question: Analysis of a proposal by the net present value method indicated that the present value exceeded the amount to be invested. Which of following statements
Analysis of a proposal by the net present value method indicated that the present value exceeded the amount to be invested. Which of following statements best describes the results of this analysis?
The proposal is desirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
The proposal is desirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
The proposal is undesirable and the rate of return expected from the proposal is less than the minimum rate used for the analysis.
The proposal is undesirable and the rate of return expected from the proposal exceeds the minimum rate used for the analysis.
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