Which of the following results of the net present value method in capital budgeting is the LEAST acceptable?
A)$(5,000)
B)$(7,000)
C)$(15,000)
D)$0

Question

Quizplus · Accepted Answer

The net present value (NPV) method in capital budgeting is used to determine the profitability of an investment by calculating the present value of future cash flows minus the initial investment. A negative NPV indicates that the investment would not be profitable. Therefore, the least acceptable result would be the option with the most negative NPV, which is Choice C with a value of $(15,000). Options A, B, and D are either breakeven (D) or have a positive NPV (A and B), which would be considered acceptable investments.

Which of the Following Results of the Net Present Value