QUESTION IMAGE
Question
what is the npv decision rule? a pv of benefits < pv of costs b pv of benefits > pv of costs c pv of benefits = pv of costs d none of the above
Brief Explanations
Net Present Value (NPV) is calculated as $NPV = \text{PV of benefits} - \text{PV of costs}$. The decision rule is to accept a project if its NPV is positive, which occurs when the present value of benefits exceeds the present value of costs.
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B. PV of benefits > PV of costs