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11Alexandr11 [23.1K]
3 years ago
12

In using the net present value method, only projects with a zero or positive net present value are acceptable because:

Business
1 answer:
Ivahew [28]3 years ago
6 0

Answer:

Option A

Explanation:

When you use a net present value method you are discounting the estimated cash flows of your project applying an interest rate that is related to your cost of capital. So, if your projects discounted cash flows are greater than zero it means that your project profitability is greater than your alterative project.

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