A project with a positive net present value generally should be accepted because it:
Correct answer: A. Adds value to the firm
- A. Adds value to the firm
- B. Eliminates every business risk
- C. Guarantees immediate cash receipts
- D. Requires no initial investment
Explanation
A positive net present value means the present value of expected cash inflows exceeds the present value of cash outflows. This indicates that the project is expected to increase firm value, although it does not eliminate risk.
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