The net present value rule states that you should accept a project if the NPV:
A)is equal to zero or negative
B)exceeds the required rate
C)is less than 1.0
D)is positive
E)exceeds the initial cost

Question

Quizplus · Accepted Answer

The NPV rule states that a project should be accepted if the net present value is positive, which means the expected future cash flows exceed the initial cost of the investment.

The Net Present Value Rule States That You Should Accept