Accept or Reject Rule of NPV
Under this method, a company should accept an investment venture if N.P.V. is positive that is if present value of cash outflows exceeds such of cash inflows or at least is equal to zero. Or NPV ≥0. This will rank ventures providing the highest rank to such venture via highest NPV as this will provide the highest cash inflow or capital gain to the company.
Advantages of NPV
Disadvantages of NPV