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:

Overall Unemployment Rate

The amount of the workforce that remains unemployed and is actively on the lookout for employment.

Cyclical Unemployment

Unemployment that results from economic downturns or recessions, characterized by a lack of demand for goods and services.

Unemployment Insurance

A government program that provides financial assistance to individuals who are unemployed through no fault of their own, offering temporary income support.

Computerized Job Bank

A digital platform or database that connects job seekers with employment opportunities.