The decision to accept international projects with a positive NPV increases the value of a firm, and it should be consistent with maximizing stockholder wealth.

Question

Quizplus · Accepted Answer

Accepting international projects with positive NPV increases the company's value and is consistent with maximizing the wealth of the shareholders. The NPV method evaluates the expected returns and risks of a project and assesses its profitability in comparison to the required rate of return. Accepting projects with a positive NPV ensures that the firm generates more cash flows than it costs, increasing the wealth of the shareholders.

The Decision to Accept International Projects with a Positive NPV