An investment project is acceptable if its NPV is greater than or equal to zero.

Question

Quizplus · Accepted Answer

A project's NPV represents the present value of its expected cash flows minus the initial cost of the investment. If the NPV is zero or positive, it means the project is expected to generate enough cash flows to recover the initial investment and provide a return that is at least equal to the required rate of return. Therefore, a project with a positive or zero NPV is acceptable, while a project with a negative NPV should be rejected.

An Investment Project Is Acceptable If Its NPV Is Greater