If a Project's NPV Is Calculated to Be Negative What

question 10

Multiple Choice

If a project's NPV is calculated to be negative what should a project manner do?

• 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:

Centrally Planned Economy

A type of economic system where the government makes all decisions regarding the production and distribution of goods and services.

Consumers Vote

Refers to the concept where consumers express their preferences and influence market trends through their purchasing choices.

Government Sets Prices

A policy or situation in which the government directly controls or sets the prices of goods and services in an economy, rather than allowing them to be determined through free-market forces.

Market Reform

a strategic change in economic policies and regulations intended to create a more competitive and efficient market environment.