The "NPV Criterion" is that a firm should invest in a new capital project if
A) the present value of the expected future cash flows is larger than the present value of the cost of the investment.
B) the future value of the expected future cash flows is larger than the cost of the investment.
C) financing can be secured on the basis of new bonds.
D) financing can be secured on the basis of new stocks.
E) financing is not necessary because there are enough liquid assets in the company's portfolio to afford the investment.
A
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Refer to Table 8-21. Consider the following data for a simple economy: Calculate nominal GDP and real GDP for 2016, using 2014 as the base year. Show your work
What will be an ideal response?
If the government removes a tax on a good, then the price paid by buyers will
a. increase, and the price received by sellers will increase. b. increase, and the price received by sellers will decrease. c. decrease, and the price received by sellers will increase. d. decrease, and the price received by sellers will decrease.