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If the NPV is the firm should the project
If the NPV is the firm should the project. O none of the above o positive; reject O positive; accept negative; accept
Expert Solution
Answer is as follows:
NPV refers to the net present value. It is calculated by subtracting initial investment from the present value of all the cash flows.
NPV = present value of all the cash flows - Initial nvestment
If the NPV is positive then the project is accepted as present value of the cash flows is more than the initial investment.
Therefore, Third option is correct.
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