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Your broker called earlier today and offered you the opportunity to invest in a security. As a friend, he suggested that you compare the current,
Your broker called earlier today and offered you the opportunity to invest in a security. As a friend, he suggested that you compare the current, or present value, cost of the security and the discounted value of its expected future cash flows before deciding whether or not to invest. The decision rule that should be used to decide whether or not to invest should be:
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