Positive NPV Projects Exist Because

question 9

Multiple Choice

Positive NPV projects exist because:

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

---

Definitions:

Merchandising Cycle

The process involved in buying and selling goods, including purchasing inventory, selling to customers, and managing cash and credit transactions.

Largest Current Asset

Typically refers to the current asset in a company's balance sheet that represents the highest value, commonly either cash or accounts receivable.

Merchandiser

A business or person that sells goods to consumers, typically involved in purchasing, displaying, and selling of products.

Inventory

The total amount of goods and materials held by a company for the purpose of resale or manufacturing.