The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.

a. True
b. False

Net present value (NPV) simply refers to the difference that is gotten between the present value of the cash inflows and that of the cash outflows over a particular period of time.

The net present value is used in investment planning and capital budgeting to determine the profitability of a project.

Therefore, the correct option is true.

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The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired. a. True b. False

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The net present value decision rule is: When an asset's expected cash flows yield a positive net present value when discounted at the required rate of return, the asset should be acquired.

a. True
b. False