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Firm ABC Inc. has enough internal resources to finance many projects. ABC Inc. just identified a project with positive NPV ($10 million). This means that:
Firm ABC Inc. has enough internal resources to finance many projects. ABC Inc. just identified a project with positive NPV ($10 million). This means that:
Group of answer choices
A. None of these statements is necessarily true.
B. The firm should not undertake projects that have NPV lower than $10 million.
C. The firm operates in a perfectly competitive industry.
D. The firm is earning less than the opportunity cost of capital when investing in this new project.
E. The IRR of this project is lower than the firm cost of debt.
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