Which of the following decision rules is a correct statement?
A. If the net present value is positive, do not invest in the capital asset.
B. If the internal rate of return is less than the required rate of return, invest in the asset.
C. Investments with longer payback periods are more desirable, all else being equal.
D. If the net present value is positive, invest in the capital asset.
D
Business
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A) defect in manufacture B) defect in design C) defect in packaging D) failure to warn
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The calculation of incremental free cash flows over a project's life should include
A) labor and material saving. B) additional revenue. C) interest to bondholders. D) A and B.
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