If the net present value analyses of a project resulted in a positive value and the company does not accept the project, it may be assumed that
A)qualitative factors outweigh the benefit of the investment.
B)an alternative project has a lower NPV.
C)the net initial investment cannot be recovered.
D)the return is greater than that required by the company.
E)quantitative factors outweigh the benefit of the investment.

Question

Quizplus · Accepted Answer

A positive net present value indicates that the project will generate more cash inflows than outflows over its lifetime. Therefore, if the project is not accepted, it suggests that the decision was influenced by qualitative factors such as organizational goals, strategic fit, or ethical considerations.

If the Net Present Value Analyses of a Project Resulted