Financing decisions differ from investment decisions for which of the following reasons?
I.you cannot use NPV to evaluate financing decisions;
II.markets for financial assets are more active than for real assets;
III.it is easier to find financing decisions with positive NPV than to find investment decisions with positive NPV
A)I only
B)II only
C)III only
D)I and III only

Question

Quizplus · Accepted Answer

Markets for financial assets are generally more active and liquid compared to markets for real assets, making financing decisions different from investment decisions.

Financing Decisions Differ from Investment Decisions for Which of the Following