In order for a company to accept a project based on Net Present Value (NPV):
a. NPV must be less or equal to zero.
b. NPV must be greater or equal to zero.
c. NPV must be greater than zero.
d. NPV must be greater than IRR.
e. NPV can not be used to accept projects.
b
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Knowledge of the exchange rate is necessary to apply the money measure concept in case of international transactions
Indicate whether the statement is true or false
Arnold Wood's company buys machine tools from large producers and sells them to several Midwestern manufacturing companies. The company Arnold works for carries inventories of the tools, which reduces capital requirements for the producers. Arnold's company is an example of a(n) ____ in a distribution channel.
A. direct distributor B. manufacturers' agent C. industrial distributor D. producers' agent E. wholesalers' agent
________, which is the return on risk capital, includes stock price appreciation plus dividends received over a specific period.
A. Earnings per share B. Dividend yield C. Total return to shareholders D. Receivables turnover
Elaborate on the real-options perspective.
What will be an ideal response?