In order to better understand a proposed positive net present value project, managers should:

Question

Quizplus · Accepted Answer

Identifying sources of economic rent helps managers understand the long-term profitability of the project and assess whether the positive net present value is sustainable. Rechecking calculations and assuming no forecast errors can help ensure the accuracy of the numbers, but it does not provide insight into the quality of the project itself. Evaluating other similar projects may provide some useful benchmarks, but it does not address the unique characteristics and potential of the proposed project.

In Order to Better Understand a Proposed Positive Net Present