Which of the following projects is rejected on the basis of net present value method?
A) Project A with an NPV of $10,000
B) Project B with an NPV of $(15,000)
C) Project C with an NPV of $21,000
D) Project D with an NPV of $1200

Question

Quizplus · Accepted Answer

Project B has a negative NPV, indicating that the project would generate negative cash flows and would not be profitable. Projects with negative NPV values are rejected under the net present value method.

Which of the Following Projects Is Rejected on the Basis