Question

An investment should be undertaken A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project. B) if the present value of the expected income stream associated with the investment is less than the full cost of the investment project. C) any time the present value of the expected income

Answer 1

A) if the present value of the expected income stream associated with the investment is greater than the full cost of the investment project.

Step-by-step explanation:

It is when the present value of the expected income stream associated with the investment is greater than the full cost of the investment project that the project is profitable. Most investments are undertaken with the aim of making profits.

The net present value can be used to determine if the present value of the expected income stream associated with the investment would be greater than the full cost of the investment project.