Projects that have negative NPVs should be:
A) depreciated over a longer time period.
B) charged less in overhead costs.
C) discounted using lower rates.
D) rejected or abandoned.

Question

Quizplus · Accepted Answer

Projects that have negative NPVs should be rejected or abandoned as they are not expected to generate enough cash flows to cover the initial investment and provide returns to the investors. Continuing with such projects can lead to significant financial losses for the organization.

Projects That Have Negative NPVs Should Be