Once the firm has already taken all positive-NPV projects,any additional projects it takes on are ________ investments.
A) zero or positive-NPV
B) positive-NPV
C) zero or negative-NPV
D) zero-NPV

Question

Quizplus · Accepted Answer

Once a firm has taken all positive-NPV (Net Present Value) projects, any additional projects would either have a NPV of zero, meaning they break even, or a negative NPV, indicating a loss. Positive-NPV projects are preferred because they add value to the firm.

Once the Firm Has Already Taken All Positive-NPV Projects,any Additional