When Susie calculated the Net Present Value (NPV)of a project,the value came out to be -$2,000,0000.If this is the only information she has,Susie should recommend
A) the project be accepted.
B) the project be rejected.
C) the NPV be recalculated using a higher discount rate.
D) the NPV be recalculated using a lower discount rate.

Question

Quizplus · Accepted Answer

A negative NPV indicates that the project will result in a loss and therefore should be rejected. Recalculating with a higher or lower discount rate may change the NPV value but would not change the fact that the project is not profitable.

When Susie Calculated the Net Present Value (NPV)of a Project,the