The decision rule for net present value declares that a project is acceptable if:

Question

Quizplus · Accepted Answer

The net present value method compares the present value of expected cash inflows with the initial cash outflow required by the project. If the present value of expected cash inflows exceeds the initial cash outflow, the project is considered acceptable. Therefore, choice C is the correct answer. Choices A and B are incorrect because they do not fully capture the criteria required for an acceptable project under the net present value method.

The Decision Rule for Net Present Value Declares That a Project