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    Principles of Corporate Finance Study Set 3
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    Exam 11: How to Ensure That Projects Truly Have Positive Npvs
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    A Positive NPV Forecast for a New Project Is Reliable
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A Positive NPV Forecast for a New Project Is Reliable

Question 58

Question 58

Multiple Choice

A positive NPV forecast for a new project is reliable only if it is based on


A) forecasts of cash flows.
B) Michael Porter's theories.
C) identifiable sources of economic rents.
D) results from Monte Carlo analysis.

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