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Which one of the following indicators offers the best assurance that a project will produce value for its owners? 1) Pl equal

Which one of the following indicators offers the best assurance that a project will produce value for its owners? 

1) Pl equal to zero 

2) Positive IRR 

3) Negative rate of return 

4) Positive AAR 

5) Positive NPV

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Answer #1

Answer: positive NPV Value is the present value of the future cashflows discounted the prevailing market rates.

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