If the NPV is greater than the initial investment, a project should be rejected.

Name: If the NPV is greater than the initial investment, a project should be rejected.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

If the NPV is greater than the initial investment, it means that the project is expected to generate positive cash flows in excess of the initial investment and is therefore a profitable venture. Therefore, the project should be accepted.

If the NPV Is Greater Than the Initial Investment, a Project