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If the NPV is positive, it signals a.that the value of the firm has increased. b.that the IRR is greater than the discount rate used
If the NPV is positive, it signals
a.that the value of the firm has increased.
b.that the IRR is greater than the discount rate used in the NPV calculation.
c.that the present value of cash inflows is greater than the initial capital outlay.
d.Both "that the present value of cash inflows is greater than the initial capital outlay" and "that the value of the firm has increased" are correct.
e.All of these.
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