If the algebraic sum of the present values of all cash flows related to a proposed capital
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Question:
If the algebraic sum of the present values of all cash flows related to a proposed capital expenditure discounted at the company s required rate of return is negative, it indicates that the
a) resultant amount is the maximum that should be paid for the asset.
b) discount rate used is not the proper required rate of return for this company.
c) investment is the best alternative.
d) return on the investment is less than the company s required rate of return.
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