If the NPV is greater than the cost of capital, a project should be accepted.

Name: If the NPV is greater than the cost of capital, a project should be accepted.
Brand: Quizplus
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Quizplus · Accepted Answer

The decision to accept a project is based on whether the NPV is greater than zero, not the cost of capital. If NPV > 0, it indicates that the project's returns exceed the cost of capital, making it a worthwhile investment.

If the NPV Is Greater Than the Cost of Capital