A Firm Should Accept Projects with Positive Net Present Values

question 80

Multiple Choice

A firm should accept projects with positive net present values primarily because those projects will:

• A)also have positive AARs.
• B)return the firm's initial cash outlay within one year.
• C)create value for the firm's current stockholders.
• D)produce only positive cash flows after the initial investment period.
• E)increase the current liquidity of the firm.

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Definitions:

Voluntary Early Retirement

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Zero Population Growth

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Demographic Transition Model

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Postindustrial Stage

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