The decision to accept or reject an investment proposal that computes the investment's net present value,using the organization's adjusted cost of capital as the discount rate and undertakes the investment if its net present value is positive,or rejects the investment if its net present value is negative is called the

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The decision described is the net present value (NPV) method, which calculates the present value of expected cash inflows and outflows using the organization's cost of capital as the discount rate. If the resulting NPV is positive, the investment is accepted, and if it is negative, it is rejected. The future value method calculates the value of an investment at a future point in time, while the internal rate of return method calculates the rate of return of an investment. The external rate of return method is not a commonly recognized method of investment decision-making.

The Decision to Accept or Reject an Investment Proposal That