A Firm Should Accept Projects with Positive Net Present Values

Multiple Choice

A firm should accept projects with positive net present values primarily because those projects will

A) produce cash inflows that exceed the cash outflows.
B) return the firm's initial cash outlay within 1 year.
C) create value for the firm's current stockholders.
D) produce only positive cash flows after the initial investment period.
E) increase the current liquidity of the firm.