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Under the present worth criterion a single project is acceptable if its present worth is

  • A.greater than or equal to zero
  • B.greater than its first cost in undiscounted terms
  • C.less than zero
  • D.equal to its annual worth

Answer: A

Discounting at the minimum attractive rate of return means a non-negative present worth shows the project earns at least that rate. A negative figure means the money would do better in the alternative the rate represents.

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