The Value Additivity Principle Indicates That, When a Firm Undertakes

question 53

Multiple Choice

The value additivity principle indicates that, when a firm undertakes an independent project, the value of the firm is increased by the ____ from the project.

• A) present value of the cash inflows
• B) sum of the cash inflows and outflows
• C) net present value
• D) none of the above

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