A financial manager is evaluating a project which is expected to generate profits of $100,000 per
year for the next 10 years. The project should be accepted if
A) the cost of the project is less than $1,000,000.
B) this project's expected profits are higher than any other projects the corporation has available.
C) the cost of the project is less than the present value of $100,000 per year for 10 years.
D) the present value of the project's cash inflows exceeds the present value of the project's cash
outflows.
D
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According to CAPM, the amount of reward an investor receives for bearing the risk of an individual security depends upon the:
A. amount of total risk assumed and the market risk premium. B. market risk premium and the amount of systematic risk inherent in the security. C. risk free rate, the market rate of return, and the standard deviation of the security. D. beta of the security and the market rate of return. E. standard deviation of the security and the risk-free rate of return.
The primary purpose of recording a valid deed is to:
A. Give the public constructive notice. B. Give the public actual notice. C. Transfer the ownership. D. Establish marketable title.