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:

Normal Distribution Curve

A bell-shaped curve that represents the distribution of a set of data where most observations cluster around the mean.

Binomial Distribution Curve

A probability distribution graph that represents the likelihood of a given number of successes over a series of trials, with only two possible outcomes.

Poisson Distribution Curve

A graphical representation of the Poisson distribution, showing the probability of a given number of events over a fixed interval.

Improvement Rates

Measures of the speed and effectiveness with which improvements are made in a process, product, or system over time.