According to the risk-adjusted net present value, an investment should be made if

Question

According to the risk-adjusted net present value, an investment should be made if ​

Quizplus · Accepted Answer

The risk-adjusted net present value (PV) takes into account the risk of the project and discounts the cash flows accordingly. If the risk-adjusted net present value is positive, it means the expected cash inflows from the investment exceed the expected cash outflows, and the investment is expected to create value for shareholders, considering the risk. Therefore, a positive risk-adjusted net present value indicates that the investment should be made.

According to the Risk-Adjusted Net Present Value, an Investment Should