If net present value is negative,then the project is an acceptable investment.If the project's net present value is positive,then the cash flows expected to result from the investment are sufficient to provide an acceptable rate of return,and the project should be accepted.

Question

Quizplus · Accepted Answer

The statement is incorrect. If the net present value is negative, the cash flows expected to result from the investment are not sufficient to provide an acceptable rate of return, and the project should not be accepted. Similarly, if the net present value is positive, the cash flows are sufficient, and the project should be accepted.

If Net Present Value Is Negative,then the Project Is an Acceptable