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Some investment projects will have a company sell equipment for salvage value at the end of the life of the investment. Under the net present
Some investment projects will have a company sell equipment for salvage value at the end of the life of the investment. Under the net present value method, the salvage value at the end of the life of the investment should be treated as: A. One time cash inflow O B. An annual cash inflow c One time cash outflow op Irrelevant to the net present value analysis A company has unlimited funds to invest at its discount rate. The company should invest in all projects having: A A net present value less than zero B. A net present value greater than zero c Anet present value equal to zero D. Both B and C Fabulous Corporation is considering a project that would require an investment of $85,000. No other cash outflows would be involved. The present value of the cash inflows would be $102,780. The profitability index of the project is closest to (ignore income taxes): O A. 0.83 OB. 0.21 0 0 O c. 1.21
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