If the Firm Must Choose One from a Set of Mutually

question 43

Multiple Choice

If the firm must choose one from a set of mutually exclusive alternatives with the same life span,which alternative should be selected?

• A)Select the alternative with the largest net present value of cash flows.
• B)Select the alternative with the smallest net present value of cash flows.
• C)Select the alternative with the largest net present value of cash inflows.
• D)Select the alternative with the smallest net present value of cash outflows.

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