Proposed projects should be accepted when those projects:
A)create value for the owners of the firm.
B)have a positive rate of return.
C)return the initial cash outlay within the life of the project.
D)have required cash inflows that exceed the actual cash inflows.
E)have an initial cost that exceeds the present value of the future cash flows.

Question

Quizplus · Accepted Answer

Projects should be accepted when they create value for the owners of the firm, which typically means they have a positive net present value (NPV) or create shareholder wealth.

Proposed Projects Should Be Accepted When Those Projects