A Project with a Negative Net Present Value Should Be

question 150

Multiple Choice

A project with a negative net present value should be:

• A) rejected as it does not take the time value of money into account.
• B) rejected since the expected future cash flows from the project are less than the cost of the investment.
• C) accepted since the net present value does not alter the company's capital budgeting.
• D) accepted since the expected future cash flows from the project exceed the cost of the investment.

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Definitions:

Creativity

The ability to generate or recognize ideas, alternatives, or possibilities that may be useful in solving problems, communicating with others, and entertaining ourselves and others.

Correlational Research

A method of research study used to look for and measure the degree of relationship between two or more variables or sets of data.

Self-Esteem

Someone's internal estimation of their own value or self-worth.

Income Level

A measurement of the amount of money received on a regular basis, typically used for assessing socioeconomic status.