If the Net Present Value of a Long-Term Asset Under

question 160

True/False

If the net present value of a long-term asset under consideration for purchase is negative,then the asset should not be purchased.

---

Definitions:

Foreign Subsidiaries

Companies that are partially or wholly owned by a parent company but operate in a country different from where the parent company is headquartered.

Global Corporations

Large companies that operate and provide goods or services in multiple countries beyond their home country.

Export Industries

Sectors of a country's economy that produce goods or services for sale to foreign countries.

Licensing Agreement

A legal contract whereby one party (the licensor) allows another party (the licensee) to use its intellectual property, brand, or product under specified conditions.