For a Proposed Purchase to Be Acceptable,the PV of the Future

question 38

Multiple Choice

For a proposed purchase to be acceptable,the PV of the future cash flows must:

• A)be positive at the relevant discount rate.
• B)be less than the cost of the purchase.
• C)equal or exceed the cost of the purchase.
• D)equal the purchase price.
• E)be positive at all discount rates.