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Accepting a positive net present value (NPV) project:

Guarantees all cash flow assumptions will be realized. Means the present value of the expected cash flows is equal to the project's cost. Ignores the inherent risks within the project. Is expected to increase the stockholders' value by the amount of the NPV. Indicates the project will pay back within the required period of time.

Basic Finance, Finance

  • Category:- Basic Finance
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