The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.

Question

Quizplus · Accepted Answer

The net present value decision rule states that if the net present value of an asset's expected cash flows is positive when discounted at the required rate of return, then the asset should be acquired. Therefore, option A is true.

The Net Present Value Decision Rule Is: When an Asset's