Once you have determined the net present value of a project,if the net present value is less than zero,the project should be

Question

Quizplus · Accepted Answer

If the net present value is less than zero, it means the project's expected cash inflows are lesser than the initial investment required to undertake the project. Therefore, it does not make financial sense to proceed with the project as it would result in a loss. Hence, the project should be rejected. Looking at other options like calculating the future value or using another discount rate would not change the fact that the project's net present value is negative, indicating that it's not a profitable venture.

Once You Have Determined the Net Present Value of a Project,if