alleryStart learning →A project with a negative net present value should be:
ARejected
BRepeated
CExtended
DRewarded
Answer & Solution
Correct answer: A. Rejected
1. A negative net present value means the project destroys value.
2. Projects with a negative NPV should be rejected.
3. Managers should reject any project with a negative NPV.
4. So the decision is to reject.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 16 'How Companies Think about Investing', sections 16.1-16.5_
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