Question

"In using the net present value approach, a project is acceptable if the project's net present value is ____________ or_______________."

Answer 1

Answer:

Zero or Positive.

Explanation:

The project should be accepted if the NPV (net present value) is “zero” or “positive” because the zero value means that the project will not be in loss. However, the positive value shows that the project will give profit. But if there is a negative value of net present value then it reflects that the project is giving a loss. Therefore, the project with negative NPV must be rejected. And the project that has zero net present value or positive net present value should be accepted.