General Studies · Financial Management
What is the fundamental investment decision rule when using the Net Present Value (NPV) method?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Accept all projects where the NPV is equal to the initial investment
- 2Accept a project if its NPV is greater than zero✓
- 3Accept all projects where the NPV is less than the cost of capital
- 4Accept a project only if its NPV is exactly zero
Correct answer
Accept a project if its NPV is greater than zero
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