Net Present Value (NPV) analysis accepts projects when:
✓ Correct Answer: Option B
NPV > 0: project returns exceed the required rate (cost of capital) → accept. NPV = 0: meets required return. NPV < 0: returns are insufficient → reject.
NPV > 0: project returns exceed the required rate (cost of capital) → accept. NPV = 0: meets required return. NPV < 0: returns are insufficient → reject.