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:

Philip B. Crosby

An American businessman and author who contributed significantly to management theory and quality improvement practices.

Hawthorne Studies

A series of experiments on worker productivity conducted at the Hawthorne Works in the 1920s and 1930s, which emphasized the importance of social relations and worker satisfaction.

Productivity

The efficiency with which an individual, organization, or economy can convert inputs into useful outputs.

Henry L. Gantt

An American mechanical engineer and management consultant famed for developing the Gantt chart, a graphical scheduling tool for project management.