The change in firm value due to taking on a capital, Financial Management

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The change in firm value due to taking on a capital

1. (TRUE or FALSE) The change in firm value due to taking on a capital budgeting project will be always positive.

2. (TRUE or FALSE) The IRR is a dollar number and therefore it shows how much the value of the firm will change if the project is selected.

3. (TRUE or FALSE) Projects with positive NPVs will add to the value of the firm if adopted.

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Financial Management: The change in firm value due to taking on a capital

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Financial Management: The change in firm value due to taking on a capital

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