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A firm is evaluating an investment proposal which has an initial investment of $5,000 and cash flows presently valued at $4,000. The net present value

A firm is evaluating an investment proposal which has an initial investment of $5,000 and cash flows presently valued at $4,000. The net present value of the investment is:

a.-$1,000

b.$0

c.$1,000

41.Capital budgeting is the process of planning for projects on assets with cash flows of a period greater than one year.

a.True

b.False

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