The Net Present Value rule states to accept a project if its net present value (NPV)is greater than zero.

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The Net Present Value rule states that a project should be accepted if its NPV is positive (greater than zero). This is because a positive NPV indicates that the project is expected to generate more cash inflows than outflows, resulting in a profit for the company. A negative NPV would indicate that the project is expected to result in a loss, and should therefore be rejected.

The Net Present Value Rule States to Accept a Project