In using the net present value method, only projects with a zero or positive net present value are acceptable because:
a. the return from these projects equals or exceeds the cost of capital
b. a positive net present value on a particular project guarantees company profitability
c. the company will be able to pay the necessary payments on any loans secured to finance the project
d. Both a and b are correc

When you use a net present value method you are discounting the estimated cash flows of your project applying an interest rate that is related to your cost of capital. So, if your projects discounted cash flows are greater than zero it means that your project profitability is greater than your alterative project.

Answer Link

ewomazinoade ewomazinoade · Answer 2 · 2021-08-12T18:08:44+02:00

Projects with a zero or positive net present value are acceptable because the return from these projects equals or exceeds the cost of capital

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Net present value is a capital budgeting method.

Capital budgeting methods are used to determine the profitability of a project that is about to be undertaken

Only projects with a positive Net Present Value should be accepted. A project with a negative Net Present Value should not be chosen because it isn't profitable. When choosing between positive Net Present Value projects, choose the project with the highest Net Present Value first because it is the most profitable.

Projects with zero Net Present Value, earn just what it costs to undertake the project

To learn more about Net Present Value, check here: https://brainly.com/question/16528949?referrer=searchResults