According to decision-tree analysis, investment projects should be discontinued when the:
A) probability of success is less than 50%.
B) NPV is calculated to be negative.
C) DOL increases from previous levels.
D)possibility of a failing outcome exists.

Question

Quizplus · Accepted Answer

Investment projects should be discontinued when the Net Present Value (NPV) is calculated to be negative, as this indicates that the project's expected returns do not justify the investment.

According to Decision-Tree Analysis, Investment Projects Should Be Discontinued When