If a firm finds that the net present value of a project is _____ for a given interest rate, it will _____ the project.
A)positive; undertake
B)positive; not undertake
C)negative; undertake
D)positive or negative; undertake

Question

Quizplus · Accepted Answer

A positive net present value indicates that the project is expected to generate a return higher than the required rate of return (interest rate), so the firm should undertake the project.

If a Firm Finds That the Net Present Value of a Project