What can a firm do with excess cash after it has invested in all its available positive NPV projects?
Invest in zero or negative NPV projects.
Repurchase shares and acquire other companies.
Repurchase shares, acquire other companies, or invest in zero NPV projects.
Acquire other companies.
Repurchase shares.
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Correct answer is option : Repurchase shares, acquire other companies, or invest in zero NPV projects.
Firm can use its access cash flow to zero NPV project because this will still be generating required rate of return for the company alternatively firm can repurchase its own share or acquire other company..
What can a firm do with excess cash after it has invested in all its available...
What can a firm do with excess cash after it has invested in all its available positive NPV projects? Repurchase shares and acquire other companies. Acquire other companies. Invest in zero or negative NPV projects. Repurchase shares, acquire other companies, or invest in zero NPV projects. Repurchase shares.
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