Mathematics for FinanceMTP June 24 Series IIIQuestion 1595 of 512
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Net Present value ≥0\displaystyle \ge 0, then

Options

AAccept the Proposal
BReject the proposal
CNot Feasible
DNone of the above
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Correct Answer

✅ Option a — Accept the Proposal

All Options:

  • AAccept the Proposal
  • BReject the proposal
  • CNot Feasible
  • DNone of the above

Detailed Solution & Explanation

In capital budgeting, the Net Present Value (NPV\displaystyle NPV) decision rule states: * If NPV≥0\displaystyle NPV \ge 0, accept the proposal. * If NPV<0\displaystyle NPV < 0, reject the proposal. Hence, **Option A** is the correct answer.

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