The net present value of an investment cannot be negative.​

If inventory is sold on credit, the quick ratio declines.

An increase in an investment’s cash inflows that is not the result of an increase in earnings has no effect on the net present value of an investment.​

The time value of money suggests ​

If the marginal cost of capital rises, that suggests the cost of some component of the firm’s capital structure has risen.

If the marginal cost of capital rises, that suggests the cost of some component of the firm’s capital structure has risen.

The owners of a corporation elect the board of directors.​

Retained earnings are more expensive than issuing new shares because of flotation costs.

The highest credit rating is triple A.​

The net present value assumes that cash inflows are reinvested at the net present value.​