What should the project manager do if it is determined that the net present value is negative but the internal rate of return is less than the required rate of return?
A)Decrease the required rate of return.
B)Reject the project.
C)Increase the required rate of return.
D)Calculate the profitability index.

Question

Quizplus · Accepted Answer

If the net present value is negative and the internal rate of return is less than the required rate of return, it means that the project is not profitable and not worth investing in. Therefore, the project manager should reject the project. Decreasing the required rate of return or increasing it would not change the fact that the project is not profitable. Calculating the profitability index is not useful in this scenario as the net present value is negative.

What Should the Project Manager Do If It Is Determined