The decision to accept international projects with a positive NPV increases the value of the firm and is consistent with maximizing stockholder wealth.

Question

Quizplus · Accepted Answer

Accepting international projects with a positive NPV typically increases the cash inflows of the firm, thereby increasing its overall value. This is in line with the goal of maximizing stockholder wealth, which is the ultimate objective of a financial manager. Therefore, accepting such projects is generally considered a wise decision.

The Decision to Accept International Projects with a Positive NPV