Hello,

I'm currently undergoing an assessment on capital budgeting and came across this question:

"A positive NPV indicates a project is expected to give a return greater than the market requires."Discuss in relation to the efficient market hypothesis.

The cost of capital of the project is 9.5% and when calculated the Net Present Value is Positive.

Is this cost of capital purely the required return to make a profit ? and therefor anything below this can be seen as a net loss to the company.