When using the net present value method, if the net present value is positive, you accept the investment.

Question

Quizplus · Accepted Answer

A positive net present value indicates that the projected earnings generated by a project or investment - in present dollars - exceeds the anticipated costs, also in present dollars. This suggests that the investment should yield a return above the discount rate used in the analysis, making it a financially viable option.

When Using the Net Present Value Method, If the Net