A Proposed Project Has a Positive Net Present Value

question 59

Multiple Choice

A proposed project has a positive net present value.If this project is accepted,then:

• A)the firm made an incorrect accept/reject decision.
• B)shareholder wealth will increase.
• C)shareholder wealth will remain constant.
• D)the value of the firm will decrease.
• E)the value of the firm will remain constant.

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Definitions:

Social Networking

The use of internet-based platforms that enable individuals to interact, share information, and develop social and professional contacts.

Walter Cannon

An American physiologist known for his work on the fight or flight response and for coining the term "homeostasis."

Stomach Contractions

The involuntary movements of the stomach muscles that mix and propel contents through the digestive system.

Ghrelin

A hormone produced mainly by the stomach that stimulates appetite and signals hunger to the brain.