Generally, a firm is able to find positive-NPV opportunities among its
A)financing decisions.
B)financing decisions and short-term borrowing decisions.
C)short-term borrowing decisions.
D)capital investment decisions.

Question

Quizplus · Accepted Answer

NPV (Net Present Value) is a measure of the profitability of a project, which compares the present value of the expected cash inflows to the present value of the expected cash outflows. Capital investment decisions involve investing in long-term projects that generate cash inflows over a period of time. Therefore, capital investment decisions are more likely to generate positive-NPV opportunities compared to short-term borrowing or financing decisions.

Generally, a Firm Is Able to Find Positive-NPV Opportunities Among