Which of the Following Statements Is Correct

question 58

Multiple Choice

Which of the following statements is correct?

• A) When making an investment decision, take the alternative with the positive NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• B) When making an investment decision, take the alternative with the negative NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• C) When making an investment decision, take the alternative with the highest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.
• D) When making an investment decision, take the alternative with the lowest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.