00:01
Hello students, here is a question.
00:02
When evaluating a long -term investment, which of the following is true if the net present value npv calculation is greater than zero? so, the expected rate of return for investment is less than the company cost of capital.
00:15
So, the expected rate of investment is equal to the company's cost of capital.
00:19
The expected rate of, okay, we have options here.
00:23
Let us write down the options.
00:25
So, the first option will be the expected rate of return for the investment, for the investment is less than, is less than the company's cost of capital.
00:51
And the second is the expected rate of return, the expected rate of return for investment is equal, is equals to the company's cost of capital.
01:16
And the third is the expected rate, the expected rate of return is positive, but the actual rate of return, actual rate of return is negative.
01:43
Then the expected rate of return is, expected rate of return for the investment, for the investment exceeds the company's cost of capital.
02:05
So, this is required rate of return...