Projects is consistent with the goal of the firm

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Adopting NPV>0 projects is in the set of things that we know matter.

(a) Give a careful explanation as to why adopting NPV>0 projects is consistent with the goal of the firm.

(b) We recongnize that in competitive markets, most projects will have NPV=0.

(1) Give an explanation to an ECON104 (Basic micreconomics) student about why a firm would take on such projects and what they have to gain or lose.

(2) Under what circumstances do we see NPV>0 projects?

Reference no: EM131076624

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