Project a Has a Negative NPV

question 43

Multiple Choice

Project A has a negative NPV.If accepted,what would be its impact on the shareholder wealth?

• A)To increase it
• B)To maintain it at the existing level
• C)To decrease it
• D)Unclear as there is insufficient information to decide if the project will be beneficial to the shareholders

---

Definitions:

Satisfying State

A condition or feeling experienced after needs or desires are fulfilled, often used in theories of motivation and learning.

Reward

A motivational construct that refers to the positive outcomes or pleasure experienced after engaging in certain actions or behaviors.

Operant Behavior

A type of behavior that is controlled by its consequences, including rewards and punishments.

Elicited

Refers to a response that is drawn out or evoked by a specific stimulus or condition.