Which of the Following Scenarios Is Most Desirable for the FI

question 43

Multiple Choice

Which of the following scenarios is most desirable for the FI?

• A)The initial set-up and development costs are lower than the sum of the discounted present values of cash flows from selling the product.
• B)The initial set-up and development costs exceed the sum of the discounted present values of cash flows from selling the product.
• C)The initial set-up and development costs equal the sum of the discounted present values of cash flows from selling the product.
• D)The most desirable scenario depends on the FI's individual situation.