A positive NPV means that the investment will provide added value because the projected return exceeds the .
A) modified internal rate of return
B) discount rate
C) accounting rate of return
D) adjusted present value

Question

Quizplus · Accepted Answer

A positive net present value (NPV) indicates that the investment's projected future cash flows are greater than the initial investment cost, discounted by the required rate of return (i.e., the discount rate). Therefore, the projected return exceeds the discount rate.

A Positive NPV Means That the Investment Will Provide Added