If the net present value for a project is positive,________.
A) the project should be accepted
B) its internal rate of return is more than its cost of capital
C) its expected rate of return is below the required rate of return
D) its internal rate of return is less than its cost of capital

Question

Quizplus · Accepted Answer

A positive net present value indicates that the project is expected to generate more cash inflows than cash outflows, and thus will add value to the company. Therefore, the project should be accepted.

If the Net Present Value for a Project Is Positive,________