English, asked by ritvikkaushik67, 4 months ago

if project having nagetive NPV THEN​

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Answered by aman4236
6

Answer:

The net present value rule is the idea that company managers and investors should only invest in projects or engage in transactions that have a positive net present value (NPV). They should avoid investing in projects that have a negative net present value. It is a logical outgrowth of net present value theory.

Answered by SampannSingh
0

Answer:

Net present value, commonly seen in capital budgeting projects, accounts for the time value of money (TVM). ... If the calculated NPV of a project is negative (< 0), the project is expected to result in a net loss for the company. As a result, and according to the rule, the company should not pursue the project.

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