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

Question

Quizplus · Accepted Answer

The decision to accept or reject a project based on NPV (Net Present Value) does not directly compare NPV to the initial investment. Instead, if the NPV is positive, it means the project's returns exceed its costs (including the initial investment), and the project should be accepted. If the NPV is negative, it means the project's costs exceed its returns, and it should be rejected.

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