What Is the Key Reason Why a Positive NPV Project

question 35

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 equal the project's cost.
• C)The firm will earn a return equal to the NPV value at the end of the project.
• D)The project will have a payback period equal to its life.
• E)The project's PI will be less than 1,which also indicates acceptance.

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Mail Merge Document

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