The Net Present Value Evaluation Technique Will Always Lead to a Wealth-Maximizing

question 56

Multiple Choice

The net present value evaluation technique will always lead to a wealth-maximizing decision except when

• A)choosing between mutually exclusive projects that have different cash flow patterns.
• B)a firm does not have the cash available to invest today.
• C)choosing between mutually exclusive projects that require different investment outlays.
• D)The net present value technique will always result in a wealth-maximizing decision if the inputs are correct.

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