[单选题]

Fiona Acquisition, Inc., is considering the purchase of Kingbet Company. The acquisition would require an initial investment of $190,000, but Fiona's after-tax net cash flows would increase by $30,000 per year and remain at this new level forever. Assume a cost of capital of 15 percent. Should Fiona take the action to buy Kingbet using above information?

A.Yes,because the NPV = $10,000.

B.No,because k > IRR.

C.Yes,because the IRR > the cost of capital.

参考答案与解析:

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