The Primary Idea Behind the Net Present Value Rule Is

Multiple Choice

The primary idea behind the net present value rule is that an investment:

A) Is worthwhile if it creates value for the owners.
B) Must have total cash flows that equal zero.
C) Should be accepted if it enhances management's position.
D) Should break-even from an accounting point of view.
E) Should earn a rate of return that is less than the discount rate.