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A financial manager estimates the Present Value of the cash flows produced by a machine to be $55,000. Which of the following is the most
A financial manager estimates the Present Value of the cash flows produced by a machine to be $55,000. Which of the following is the most accurate statement that could be inferred from this estimate?
A. If the machine can be purchased for $55,000 today, the manager is indifferent to the investment |
B. The the machine can be purchased for less than $55,000 today, the investment should be made |
C. If the machine costs more than $55,000 today, this is not an attractive investment |
D. All of the above are true |
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