You are analyzing a project and have prepared the following data: Based on the net present value of _____ for this project, you should _____ the project.
A) ($25,764); accept
B) ($25,764); reject
C) $2,908; reject
D) $22,317; accept
E) $22,317; reject

Question

You are analyzing a project and have prepared the following data:  Based on the net present value of _____ for this project, you should _____ the project.
A) ($25,764); accept 
B) ($25,764); reject 
C) $2,908; reject 
D) $22,317; accept 
E) $22,317; reject

Quizplus · Accepted Answer

The net present value (NPV) is negative, indicating that the project is not generating enough value to cover its costs and provide a positive return. Therefore, the project should be rejected. Option B is the only option with a negative NPV.

You Are Analyzing a Project and Have Prepared the Following