If the net present value of a proposed investment is positive:
A)the investment not will be made.
B)the cost of capital is higher than the internal rate of return.
C)the cost of capital is positive.
D)the cost of capital is less than the expected rate of return.

Question

Quizplus · Accepted Answer

A positive net present value indicates that the expected rate of return on the investment is greater than the cost of capital, making the investment attractive.

If the Net Present Value of a Proposed Investment Is