If any project is to have a positive NPV,advocates of that project:

Question

Quizplus · Accepted Answer

A positive Net Present Value (NPV) indicates that the project's returns exceed its costs when discounted back to present value terms. However, simply crunching numbers is not enough. It's crucial for the advocates of the project to understand and articulate the project's competitive advantage, which justifies the expected cash flows and ultimately contributes to a positive NPV. This involves a strategic understanding of the project's potential in the market or operational efficiency, not just a numerical analysis. Choices A, C, and D either underestimate the importance of strategic planning, encourage bias, or incorrectly state the relationship between inflows and outflows for a positive NPV.

If Any Project Is to Have a Positive NPV,advocates of That