Positive NPV projects may originate from cost saving projects such as those that

Question

Quizplus · Accepted Answer

All of the statements are correct in terms of creating cost savings, which could lead to a positive NPV project. Creating economies of scale leads to cost savings through increased efficiency and lower production costs. Product differentiation can lead to a competitive advantage and a higher price point, which can increase revenue and profitability. Generating absolute cost advantages means reducing production costs, which can increase profitability. Finally, exploiting advantages in distribution channels can lead to better market penetration, increased sales, and cost savings through more efficient supply chain management, all leading to higher NPV. Therefore, all of the above statements can result in positive NPV projects.

Positive NPV Projects May Originate from Cost Saving Projects Such