If a Firm Refuses to Offer Credit the NPV of the Transaction

question 4

Multiple Choice

If a firm refuses to offer credit the NPV of the transaction is:

• A) the cash revenues received minus the cost paid in time period 0.
• B) the discounted value of the revenues from time period 0.
• C) the net cash flow from the future payments to be received.
• D) determined by all of these factors.