If NPV Is Negative

question 13

Multiple Choice

If NPV is negative:

• A) the project is expected to be profitable
• B) the project is expected to be break even
• C) the project is expected to not be profitable
• D) not enough information to know

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Definitions:

Drawing Account

An account used to record withdrawals of cash or other assets by the owner for personal use, reducing owner's equity.

Expense

An expense refers to the money spent or cost incurred in an entity's efforts to generate revenue representing the cost of doing business.

Account Title

The name given to an account in the financial statements that uniquely identifies it.

Increase Side

The side of an accounting ledger where increases in account balances are recorded, typically the left side for assets and expenses, and the right side for liabilities, equity, and income.