The Value of a Firm

Multiple Choice

The value of a firm

A) increases when a new project with a negative net present value is accepted.
B) equals the sum of the individual values of the firm's projects and divisions.
C) is unaffected by the value of any one individual project.
D) increases anytime a project with a zero net present value is accepted.
E) is equal to the sum of all of the future cash flows derived from the firm's projects.