When the net present value of an investment is negative, it means that project is worth the risk.

Name: When the net present value of an investment is negative, it means that project is worth the risk.
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Question

Quizplus · Accepted Answer

A negative net present value indicates that the project's expected cash flows are not sufficient to recover the initial investment and provide the minimum required rate of return, suggesting it is not financially worthwhile.

When the Net Present Value of an Investment Is Negative