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 present value of future cash flows from the investment is greater than the initial investment cost, using the discount rate to account for the time value of money. The discount rate reflects the project's risk and the opportunity cost of capital.

A Positive NPV Means That the Investment Will Provide Added