If a project has a positive net present value that will become negative with a ________,it can be considered to be a risky project.
A)large change in cash flows
B)small change in cash flows
C)large change in required rate of return
D)large change in estimated life

Question

Quizplus · Accepted Answer

A project is considered risky if a small change in cash flows can turn its net present value from positive to negative, indicating high sensitivity to cash flow variations.

If a Project Has a Positive Net Present Value That