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The reason a firm might still prefer that costlier machine is that it will generate more:
ACash inflows
BCash outflows
CCash discounts
DCash deposits
Answer & Solution
Correct answer: A. Cash inflows
1. A higher price alone would deter it.
2. What comes back matters more.
3. It generates more cash inflows.
_Source: OpenStax Principles of Finance 2e, Chapter 16, How Companies Think about Investing._
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