6-7 Net present Value Net Present Value rule Managers increase shareholders' wealth by accepting all projects that are worth more than they cost Therefore, they should accept all projects with a positive net present value Irwin/McGraw-Hill CThe McGraw-Hill Commpanies, Inc, 2001©The McGraw-Hill Companies, Inc.,2001 6- 7 Irwin/McGraw-Hill Net Present Value Net Present Value Rule Managers increase shareholders’ wealth by accepting all projects that are worth more than they cost. Therefore, they should accept all projects with a positive net present value