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

question 20

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 the above.
• E) always equal to zero.

---

Definitions:

Chemically Equivalent

Describes atoms or groups in a molecule that are identical in their chemical environment, often resulting in indistinguishable spectroscopic signals.

Diastereotopic

Describes hydrogen atoms (or groups) in a molecule that are not equivalent in the three-dimensional space, causing different chemical shifts in NMR spectroscopy.

Enantiotopic

Refers to two groups or atoms in a molecule that are mirror images of each other but are not superimposable, commonly used in stereochemistry.

Internal Reference

A benchmark or standard within an experiment or measurement against which other data or results are compared or calibrated.