Which One of the Following Best Explains the Impact on a Firm

question 91

Multiple Choice

Which one of the following best explains the impact on a firm that accepts a project with a negative NPV?

• A) negative cash flows
• B) decrease in the value of the firm
• C) high marginal cost of capital
• D) low initial returns

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Definitions:

Decimal Place

The position of a number to the right of the decimal point; each position represents a power of ten.

Comparative Income Statement

A financial statement that compares income, expenses, and net profit over multiple periods to assess performance.

Percent Of Sales

A financial ratio that compares a certain figure or expense to the total sales, expressed as a percentage.

Young Technologies

Emerging or recently developed technological innovations that have the potential to significantly impact business, society, or various scientific fields.