If a project's net present value (NPV) is positive,:

Question

Quizplus · Accepted Answer

A positive NPV indicates that the project's expected cash flows are greater than the initial investment, which makes it an acceptable investment. The IRR may or may not be equal to the firm's required rate of return, and the project's payback period is not relevant to the acceptability of the investment. The required rate of return may or may not be attainable, but this does not affect the project's NPV.

If a Project's Net Present Value (NPV) Is Positive