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The value of a firm increases when a new project with a negative NPV is accepted. equals the sum of the individual values of the

The value of a firm

increases when a new project with a negative NPV is accepted.

equals the sum of the individual values of the firm

s projects and divisions.

is unaffected by the value of any one individual project.

increases when a project with a zero NPV is accepted.

is equal to the sum of all future cash flows derived from the firm

s projects.

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