Answer to Question #106490 in Finance for C Guerra

Question #106490
Why do many companies use a positive number instead of zero for the NPV rule?
1
Expert's answer
2020-03-25T10:44:41-0400

Companies pursue projects with a positive NPV because the company can expect profit and should consider moving on with the project.A NPV of zero means that the project is not expected to result in significant loss or gain for the company.


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