- CFA Exams
- CFA Level I Exam
- Study Session 10. Corporate Finance (1)
- Reading 32. Capital Budgeting
- Subject 3. Investment Decision Criteria
CFA Practice Question
A firm should accept a project if the ______, according to the NPV rule.
A. estimated NPV exceeds the project's cost (indicating that the project has more than recaptured its initial cost in terms of net income)
B. NPV is negative but the IRR is positive
C. estimated NPV is positive
User Contributed Comments 2
| User | Comment |
|---|---|
| murli | A is wrong because the explanation, i.e. recovery of cost in terms of net income as NPV is recovery in terms of cash flow. |
| pooji | good point!! |