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What Is the Key Reason Why a Positive NPV Project

Question 1

Multiple Choice

What is the key reason why a positive NPV project should be accepted?


A) The project is expected to increase shareholder value.
B) The present value of the expected cash flows equals the project's cost.
C) The project will produce positive cash flows in the future.
D) The project's payback will be positive during its life.
E) The project's PI will be less than 1,which indicates acceptance.

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