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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Definitions:

Logrolling

A negotiation strategy where two parties exchange favors or support for each other’s proposals to achieve mutual benefit.

Preferences

Individual likes or choices, often reflecting personal values or desires.

Positive Problem Solving

An approach to conflict resolution that focuses on identifying and addressing the underlying causes of a problem in a constructive manner.

Neutral Terms

Language or wording that is impartial and free from bias or strong emotional connotations.