Homework SourseThe decision rule for net present value declares that a proj
The decision rule for net present value declares that a project is acceptable if
The decision rule for net present value declares that a project is acceptable if
Solution
Net present value (NPV) = Present value of cash inflows-Present value of cash outflows
These present values are calculated at required rate of return. If the NBPV is positive, project will be accepted otherwise project will be rejected.
Hence, The decision rule for net present value declares that a project is acceptable if NPV > 0.
