If a company accepts a project with a positive NPV,the project will increase the value of the firm.

Question

Quizplus · Accepted Answer

Accepting a project with a positive NPV means that the present value of the project's future cash flows exceeds the initial investment cost. This will result in an increase in the value of the firm as the project contributes positively to the firm's cash flows and profitability. Therefore, accepting a project with a positive NPV is a wise decision for the company.

If a Company Accepts a Project with a Positive NPV,the