Question
An investment project for which the net present value is $300 would result in which of the following conclusions? 1)The investment project should only be
An investment project for which the net present value is $300 would result in which of the following conclusions?
1)The investment project should only be accepted if net present value is zero; a positive net present value indicates an error in the estimates associated with the analysis of this investment.
2)The net present value method is not suitable for evaluating this project; the internal rate of return method should be used.
3)The rate of return of the investment project is acceptable, so the project is a good alternative.
4)The net present value is too small; the project should be rejected.
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