Question

NPV ensures that: we generate cash the most efficiently for our investors O we choose the greatest wealth creating opportunit

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Answer #1

Answer: The second option is correct.
We choose the greatest wealth creating opportunity for our investors

Explanation:
Projects with positive NPV is selected as per NPV decision rule
However, if we have multiple projects to undertake and we can accept only one project, then we select the project with higher NPV because it will increase the shareholders' wealth by higher amount.

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