What Should Occur When a Project's Net Present Value Is

question 52

Multiple Choice

What should occur when a Project's net present value is determined to be negative?

• A)the discount rate should be decreased.
• B)the profitability index should be calculated.
• C)the present value of the project cost should be determined.
• D)the project should be rejected.

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Definitions:

Tar

A dark, thick, and sticky liquid or semi-solid material derived from the distillation of organic matter, used in road construction and as a waterproofing agent.

Atomic Bombs

A weapon of mass destruction that derives its destructive force from nuclear reactions, either fission or a combination of fission and fusion.

Harry Truman

The 33rd president of the United States, known for his decision to use atomic bombs during World War II and for the Truman Doctrine.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations and marked by significant battles across Europe, Asia, and Africa.