Question
Fill in blank with appropriate terms: PV analysis of an investemnt specifies that it is (A) ______ if the PV of the future cash inflows
Fill in blank with appropriate terms:
PV analysis of an investemnt specifies that it is (A) ______ if the PV of the future cash inflows is (B) _______ the cash outlay; the investment is (C) _______ if the PV of future cash inflows is(D) ______ the cash outlay. The NPV of an asset equals the difference between the PV of the future(E)__________produced by an asset and the (F)______ of hte asset. An investment is acceptable if its NPV is (G)________. The NPV of an asset measures the (H)_____ which accrues to the (I)________of the firm if the asset is aquired. Thus, the use of the NPV rule iscosistent with the financial managers goal of maximizing the (J)_______ of the firms common stock.
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