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The value of a firm a . increases when a new project with a negative NPV is accepted. b . is equal to the sum
The value of a firm
aincreases when a new project with a negative NPV is accepted.
bis equal to the sum of all future cash flows derived from the firms projects.
cincreases when a project with a zero NPV is accepted.
dis unaffected by the value of any one individual project.
eequals the sum of the individual values of the firms projects and divisions.
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