The NPV decision rules are based on the following statements that follow from the definition of NPV.
NPV > 0 ® adds shareholder wealth
NPV = 0 ® no change in shareholder wealth
NPV < 0 ® reduces shareholder wealth

Question

Quizplus · Accepted Answer

This is correct as the NPV decision rules are based on whether the project adds, does not change, or reduces shareholder wealth.

The NPV Decision Rules Are Based on the Following Statements