💰 CPA Exam Prep

In capital budgeting, a projects NPV > 0 means:

A The project should be rejected
B The project is expected to add value to the firm and should be accepted
C Break-even
D The IRR equals zero

✓ Correct Answer: Option B

Positive NPV means the present value of inflows exceeds outflows, creating shareholder value. Accept the project.

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