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1. The primary idea behind the net present value rule is that an investment: a. Is worthwhile if it creates value for the owners. b.

1. The primary idea behind the net present value rule is that an investment:
a. Is worthwhile if it creates value for the owners.
b. Must have total cash flows that equal zero.
c. Should be accepted if it enhances management's position.
d. Should break-even from an accounting point of view.
e. Should earn a rate of return that is less than the discount rate.

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