When would a project be rejected under the net present value method?

Question

Quizplus · Accepted Answer

According to the net present value method, a project should be rejected if its net present value is less than zero. This implies that the project is expected to result in a negative return, meaning it is not a financially viable investment. Projects with a net present value of zero are considered to break even, while projects with a net present value greater than zero are considered financially viable and should be accepted. Therefore, only if the net present value is less than zero should the project be rejected.

When Would a Project Be Rejected Under the Net Present