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The NPV Decision Rule

When making an investment decision, take the alternative with the highest NPV. Choosing this alternative is equivalent to receiving its NPV in cash today.

Accept all projects with a positive NPV.  Accepting them is equivalent to receiving their NPV in cash today (firm value changes by the NPV of the project).  

Reject projects with a negative NPV.  Accepting these projects is equivalent to reducing current wealth by their NPV.

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