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The present value ratio of a proposed investment will be: less than 1.0 if the net present value is positive. negative if the proposed investment
The present value ratio of a proposed investment will be:
less than 1.0 if the net present value is positive. | |
negative if the proposed investment meets the cost of capital target. | |
less than 1.0 if the net present value is negative. | |
greater than 1.0 if the cost of capital exceeds the internal rate of return |
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