Once you have determined the net present value of a project, if the net present value is less than zero, the project should be
A)accepted.
B)rejected.
C)evaluated further by evaluating future cash flows
D)evaluated further by assessing future revenues and costs.

Question

Quizplus · Accepted Answer

If the net present value is less than zero, it means that the project will not generate enough cash flow to cover the initial investment and generate a return equal to the required rate of return. Therefore, the project should be rejected. Evaluating future cash flows or assessing future revenues and costs may help in identifying potential issues with the project, but if the NPV is negative, the project is not viable and should be rejected.

Once You Have Determined the Net Present Value of a Project