Positive NPV Projects Exist Because

question 5

Multiple Choice

Positive NPV projects exist because:

• A) analysts select sufficiently low discount rates.
• B) most projects are unique and innovative.
• C) cash-flow projections are extended into the future.
• D) firms hold competitive advantages.

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Definitions:

Oligopoly Market

A market structure characterized by a small number of large firms dominating the industry, often leading to limited competition, and where the actions of one firm can significantly impact the others.

Oligopolies

Market structures characterized by a small number of firms that have significant control over market prices and competition.

Marginal Costs

The additional cost incurred by producing one more unit of a product or service.

Interdependent

The mutual reliance between two or more groups, individuals, industries, or economies.