Question
When evaluating a long-term investment, which of the following is true if the Net Present Value (NPV) calculation is greater then zero? The expected rate
When evaluating a long-term investment, which of the following is true if the Net Present Value (NPV) calculation is greater then zero?
The expected rate of return for the investment is less than the company's cost of capital (i.e. required rate of return).
The expected rate of return for the investment equals the company's cost of capital (i.e. required rate of return).
The expected rate of return is positive but the actual rate of return is negative.
The expected rate of return for the investment exceeds the company's cost of capital (i.e. required rate of return).
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