The “NPV Criterion” is that a firm should invest in a new capital proj

The “NPV Criterion” is that a firm should invest in a new capital project if

A) the present value of the expected future cash flows is larger than the present value of the cost of the investment.
B) the future value of the expected future cash flows is larger than the cost of the investment.
C) financing can be secured on the basis of new bonds.
D) financing can be secured on the basis of new stocks.
E) financing is not necessary because there are enough liquid assets in the company’s portfolio to afford the investment.

ANSWER

A