Question: You are evaluating two projects. One has a negative NPV of $4 million, and other has a negative NPV of $5 million. Which project will

You are evaluating two projects. One has a negative NPV of $4 million, and other has a negative NPV of $5 million. Which project will you choose, and why?

The one with the NPV of -$4 million because the company will lose less.

Neither. A negative NPV means the cash outflows are greater than the cash inflows.

Either one is acceptable

None of the answers is correct.

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