Question: Your supervisor has just completed a discounted cash flow analysis on a 15-year, $3,000,000 project. She is upset that the net present value was negative

Your supervisor has just completed a discounted cash flow analysis on a 15-year, $3,000,000 project. She is upset that the net present value was negative and is getting ready to report her findings to senior management and recommend that the company abandon the project. Upon reviewing the computations, you discover that the net present value on this $3,000,000 project was a negative $3,510. What additional factors would you suggest that your supervisor consider before she makes her report recommending the abandonment of this project?

Step by Step Solution

3.44 Rating (151 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

There are several factors that your supervisor should consider before recommending the abandonment o... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Introduction To Accounting Questions!