Which of the following would be the best basis on which to accept an investment opportunity?

Question

Quizplus · Accepted Answer

The net present value (NPV) of all cash flows is the most comprehensive measure of the investment's potential profitability. It takes into account the timing and amount of cash flows, as well as the cost of capital. A positive NPV indicates that the investment is expected to generate more cash than it costs, which is a good indication of its financial viability. Positive net cash flows, a payback period, and the rate of return are also important considerations, but they do not provide as complete a picture as NPV.

Which of the Following Would Be the Best Basis on Which