If the net present value of a long-term asset under consideration for purchase is negative,then the asset should not be purchased.

Name: If the net present value of a long-term asset under consideration for purchase is negative,then the asset should not be purchased.
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Question

Quizplus · Accepted Answer

A negative net present value indicates that the cost of acquiring and maintaining the asset outweighs the potential future cash flows it would generate. Therefore, it would not be financially prudent to invest in such an asset.

If the Net Present Value of a Long-Term Asset Under