If the net present value of a proposed investment is negative,it means that the investment should not be made.

Name: If the net present value of a proposed investment is negative,it means that the investment should not be made.
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Question

Quizplus · Accepted Answer

A negative net present value means that the investment's expected cash flows are worth less than the initial cost of the investment. Therefore, it does not meet the minimum requirement for profitability and should not be made.

If the Net Present Value of a Proposed Investment Is