Assuming That This Project Will Provide Rearden with Perpetual Annual

question 20

Multiple Choice

Assuming that this project will provide Rearden with perpetual annual cash flows of $65,000,Rearden should:

• A)invest today since the NPV is positive.
• B)invest today since the NPV is negative.
• C)invest today since the NPV using the hurdle rate is positive.
• D)delay investing since the NPV using the hurdle rate is negative.
• E)delay investing since the NPV using the hurdle rate is positive.