An organization should consider only projects with a ____ NPV if financial value is a key criterion for project selection.
A) positive
B) negative
C) zero
D) well-defined

Question

Quizplus · Accepted Answer

NPV, or Net Present Value, is a financial metric used to calculate the difference between the present value of cash inflows and the present value of cash outflows. A positive NPV indicates that a project is expected to generate more cash inflows than outflows, creating value for the organization. Therefore, if financial value is a key criterion for project selection, an organization should consider only projects with a positive NPV.

An Organization Should Consider Only Projects with a ____ NPV