Answer Posted / ben c

Slight correction on Karthik K:

t - the time of the cash flow, whereas t(now) = 0

...

If NPV > 1 the investment would add value to the firm.
the project may be accepted.

If NPV < 1 the investment would subtract value from the
firm.

If NPV = 1 the investment would neither gain nor lose value
for the firm

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