Question: A negative net present value indicates that the wrong discount rate was used. project is acceptable. project's annual rate of return exceeds the discount rate.

A negative net present value indicates that the

wrong discount rate was used.

project is acceptable.

project's annual rate of return exceeds the discount rate.

present value of the cash inflows was less than the present value of the cash out flows.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock 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 Accounting Questions!