If the net present value is positive, the present value of the investment's stream of future operating profits is ________ than the present value of its cost and profit- maximizing managers_______ make the investment.
A)less; should not
B)less; should
C)greater; should
D)greater; should not

Question

Quizplus · Accepted Answer

When the net present value is positive, it means that the present value of the investment's future operating profits exceeds the present value of its cost, indicating a profitable investment. Therefore, profit-maximizing managers should make the investment.

If the Net Present Value Is Positive, the Present Value