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The net present value of a project tells management what decision to make on that investment. If the net present value is negative, management should:
The net present value of a project tells management what decision to make on that investment. If the net present value is negative, management should: accept the project because the cost is less than the revenue, thereby adding value to the firm. reject the project because the present value of future cash-flows is greater than the cost of the project. reject the project because accepting would reduce the value of the firm. accept or reject depending on the project's payback period
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