If a Project's NPV Is Negative

question 60

Multiple Choice

If a project's NPV is negative:

• A)the project earns less than the cost of capital.
• B)the investment will not add value or contribute to shareholder wealth.
• C)the present value of expected cash outflows is greater than the present value of expected cash inflows.
• D)All of the above

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Definitions:

Toll-free Number

A telephone number that is billed for all arriving calls instead of incurring charges to the originating caller, typically used by businesses to encourage customer contact.

Prospecting

The process of identifying potential customers or clients for a business's products or services.

Potential Customers

Individuals or organizations that are likely to be interested in purchasing a company's products or services.

Lead Initiation

The process of identifying and beginning contact with potential customers or clients.