On a practical basis a,manager should always accept all positive NPV projects even if this means exceeding a limited budget.

Question

Quizplus · Accepted Answer

While a positive NPV indicates a project is expected to add value to the company, accepting all such projects without considering budget constraints can lead to overextension of financial resources, potentially impacting the company's liquidity and overall financial health. Managers must prioritize projects and sometimes may have to reject or delay projects with positive NPV due to budget limitations.

On a Practical Basis A,manager Should Always Accept All Positive