What does a negative NPV (Net Present Value) indicate about a project?a) The project is profitableb) The project’s return exceeds the discount ratec) The project should be acceptedd) The project should be rejected

What does a negative NPV (Net Present Value) indicate about a project?a) The project is profitableb) The project’s return exceeds the discount ratec) The project should be acceptedd) The project should be rejected

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter12: Capital Investment Decisions

Section: Chapter Questions

Problem 16MCQ: Using IRR, a project is rejected if the IRR a. is equal to the required rate of return. b. is less...

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Question

What does a negative NPV (Net Present Value) indicate about a project?
a) The project is profitable
b) The project’s return exceeds the discount rate
c) The project should be accepted
d) The project should be rejected

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