What Is the Key Reason Why a Positive NPV Project

question 1

Multiple Choice

What is the key reason why a positive NPV project should be accepted?

• A)The project is expected to increase shareholder value.
• B)The present value of the expected cash flows equals the project's cost.
• C)The project will produce positive cash flows in the future.
• D)The project's payback will be positive during its life.
• E)The project's PI will be less than 1,which indicates acceptance.

---

Definitions:

Close-Substitute

A product or service that can easily replace another in the consumption preferences of consumers due to its similarity.

Complements

Goods or services that are consumed together because the use of one enhances the value of the other.

Cholesterol

A waxy, fat-like substance found in all cells of the body, necessary for making hormones, vitamin D, and substances that help digest foods, but high levels can lead to health issues.

Cattle Feed

involves materials and nutritional supplies consumed by cattle, aiming at ensuring proper growth, health, and productivity of the livestock.