Net Present Value : Present values of cash outflows are deducted from present values of cash inflows to calculate the net present value of the investment. of an investment is considered to make an investment decision. To Explain: Circumstances in which equity holders have a possible incentive to take on negative investments.

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Chapter 21, Problem 12CC

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Net Present Value: Present values of cash outflows are deducted from present values of cash inflows to calculate the net present value of the investment. of an investment is considered to make an investment decision.

To Explain: Circumstances in which equity holders have a possible incentive to take on negative investments.

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